MUFG Financial institution see potential for the euro to parity towards the US greenback within the subsequent three months

MUFG Financial institution expects the euro to weaken towards the greenback, doubtlessly approaching parity within the first quarter of 2025, earlier than stabilizing and staging a average restoration within the second half of the 12 months.

The forecast displays the persistence of macroeconomic divergence early within the 12 months, a dynamic the financial institution sees as a key driver of euro weak spot.

Nevertheless, MUFG analysts consider this divergence is essentially priced into present market ranges, limiting the scope for additional vital draw back.

As these macroeconomic disparities start to fade, the euro is anticipated to regain some floor later within the 12 months.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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