If some of the ECB's anticipated rate hikes are priced in, the EUR/USD will fall - ABN Amro

The outperformance of the US economy must have a direct impact on the EUR/USD currency pair's downfall.

April 26, 2022 - 09:26 AM 268 views

If some of the ECB's anticipated rate hikes are priced in, the EUR/USD will fall - ABN Amro

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© If some of the ECB's anticipated rate hikes are priced in, the EUR/USD will fall - ABN Amro

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The outperformance of the US economy must have a direct impact on the EUR/USD currency pair's downfall.

According to the economists at ABN Amro, "They anticipated that the ECB (European Central Bank) would disappoint the market while the Fed (Federal Reserve) would set the market expectations high." But, their views on the Fed are approximately priced in by the market, but they believe that the ECB will tighten monetary policy less swiftly than the financial markets currently predict. The euro will undoubtedly fall if some of the ECB's projected rate hikes are priced in "

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