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ING analyst Carsten Brzeski argues that the ECB will find it hard to weaken the euro at its December meeting because markets have priced in heavy easing. He targets EUR/USD at 1.25 in 2021, with upside risk to 1.30.
He notes that a rate cut or much larger asset purchases would be needed to push the euro lower.
A forecast of a stronger euro and weaker dollar would reduce the dollar cost of commodities priced in dollars for euro-zone buyers and could lift US export prices. The view is a forecast rather than a new fact.
think.ing.comCarsten BrzeskiDec 8, 2020After 388 past bullish macro events, EURUSD moved a median +0.3% over 5 sessions (62% higher; middle half -0.4% to +1.1%), and +0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
