Nordea targets 1.12 in EURUSD – Forex Signals Analysts at Nordea have said they expect a stronger USD in the coming year as the Federal Reserve begins tightening monetary policy.

Dollar extends post-payrolls pullback

The relative outlook between the Fed and the ECB will likely widen policy-wise over the coming year, leaving the EUR vulnerable versus the USD,” said Nordea analysts Andreas Steno Larsen and Jan von Gerich.

Central Banks
There is no doubt that the Fed is looking to reduce stimulus, beginning with tapering asset purchases, which most expect to commence before the end of the year.

Forex Signals – Dollar Holds Near Session Highs

The latest minutes from the July meeting showed a majority now expects the process to slow asset purchases to begin before year end.

Nordea expect this to prove to be a strong USD scenario, as was the case in 2013/14 when the Fed tapered QE3.

“We target levels around 1.10 in EUR/USD over the forecast horizon [end-2023] and expect the bulk of the move to happen sooner rather than later,” Larsen and von Gerich said.

On rate hike timing, Nordea expects the first interest rate hike from the Fed in September 2022, followed by another three hikes in 2023.

GBPUSD Price Is Targeting $1.37

On the European Central Bank, Nordea says December looks a likelier time to decide when the Pandemic Emergency Purchase Programme.

Larsen and von Gerich do not see any interest rate hikes from the ECB through the end of 2023.

Forex Signals – no deal between UK and EU

Nordea says that commodity-related currencies and those which are linked to China – such as CAD, AUD.

Nordea targets 1.12 in EURUSD


Nordea targets 1.12 in EURUSD

FX Signals

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Nordea targets 1.12 in EURUSD