EUR/USD: Clear upside move to take hold in the second half of the year – MUFG

EUR/USD rallied strongly into the end of last year. Economists at MUFG Bank analyze the world’s most popular currency pair outlook for 2024.

ECB to deliver 125 bps of rate cuts by the end of this year

We are now expecting the ECB to deliver 125 bps of rate cuts by the end of this year. It is one of the reasons why we expect the euro to strengthen only modestly against the US dollar in the year ahead as the Fed is also expected to be active in lowering rates to less restrictive levels in 2024.

Our latest forecasts for EUR/USD show a more neutral profile for the pair in the first half of this year before it adjusts higher in the second half of this year up to towards the 1.1400 level by year-end.

Jan 8, 2024

Mexican Peso hits four-month highs against the US Dollar

The Mexican Peso (MXN) post decent daily gains of 0.31% against the US Dollar (USD) following last week’s US employment report and a light economic docket in Mexico.

NY Fed: Year-ahead expected inflation drops to 3%, lowest level since January 2021

The Federal Reserve Bank of New York's latest Survey of Consumer Expectations showed on Monday that the US consumers' one-year inflation expectation dropped to its lowest level since January 2021 at 3% in December from 3.4% in November.