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EUR/USD registered small gains on Wednesday. Economists at ING analyze the pair’s outlook.
We cannot see a strong case for an immediate reversal higher in EUR/USD but these relatively high levels of US rates and the Dollar should present opportunities this month for corporates and investors to better position for Fed easing this summer.
The market currently prices around 100 bps of Fed easing this year and we struggle to see the market pricing in anything less than three Fed cuts this year.
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