EUR/USD to enjoy considerable gains towards 1.16 by year-end – Commerzbank

The high inflation figures are apparently starting to make an impression on the European Central Bank (ECB) but the Federal Reserve (Fed) remains on course to outpace its counterpart in the tightenignh cycle. All in all, economists at Commerzbank expect the EUR/USD to advance nicely towards the 1.16 level by end-2022.

EUR/USD should recover if the fighting in Ukraine loses intensity

“The EUR/USD exchange rate should recover if the fighting in Ukraine loses intensity. However, the recovery potential will be dampened by the fact that the Federal Reserve is reacting more decisively to the inflation problem than the ECB.”

“For the end of the year, we expect EUR/USD rates around 1.16.”