EUR/USD: Upside potential, 1.12 by end-2023 and 1.16 by end-2024 – ABN Amro

Economists at ABN Amro believe that the EUR/USD pair is set to advance nicely over the coming months.

More upside in EUR/USD for 2023 and 2024

“As long as EUR/USD is above 1.0325 the long-term trend is positive.”

“We think there is more upside in EUR/USD for 2023 and 2024. This is mainly driven by a narrowing of the difference in policy rates and government bond yields between the US and the Eurozone as a result of more the more aggressive rate cuts we expect for the Fed compared to the ECB at the end of 2023.” 

“Our forecast for the end of 2023 for EUR/USD is 1.12 and to 1.16 end of 2024.”