The greenback could be relatively stable in the near term. But an extended period of US Dollar depreciation is fast approaching, wchi should lift EUR/USD to 1.13 by the end of the year, economists at Wells Fargo report.
Eventual ECB easing to be later and more gradual than that of the Fed
“We expect ECB rate hikes will outpace those of the Fed in the near term and, with the Eurozone economy proving quite resilient, we expect eventual ECB easing to be later and more gradual than that of the Fed.”
“After the period of brief greenback stability in early 2023, we think the prospects for the Euro will brighten, and expect the EUR/USD exchange rate to reach 1.13 by the end of this year.”
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