Eurusd To Move High Commerzbank

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Eurusd To Move High Commerzbank

Eur/Usd To Move Near 1.14 By Mid-2025 - Commerzbank

According to Commerzbank, they have decided to change their forecast for the EUR/USD. Earlier, they were looking forward to USD strength due to an active monetary policy and strong growth.

However, that assumption is now out of the window, and they are now forecasting the weakness of the US Dollar in the medium-term.

Eurozone Inflation To Remain Moderate

Meanwhile, the chances of higher inflation in the Eurozone and a relaxed ECB policy are also very slim now. According to Commerzbank, the Eurozone inflation will likely remain moderate, which means the EUR will gain strength.

Overall, Commerzbank has set a target price of 1.14 for the EUR/USD. According to them, the EUR/USD pair can reach these levels by the middle of 2025.

As for the 2H 2025, they expect a rebound in the US economy. According to Commerzbank, the US Federal Reserve will be done with any rate cuts at that stage. In fact, the US Federal Reserve may even think about hiking the policy rate again to control the inflation.

When that happens, the markets will have to rethink their view of the European Central Bank's monetary policy.

The issue of Trump tariffs will also play a key role in determining the exchange rate of EUR/USD. But then again, the tariffs will be applied to every other country.

In fact, Trump has also threatened the members of the BRICS with heavy tariffs if they pursue a US Dollar alternative. So, as far as the tariff risks are concerned, they are very widespread and may not even materialize.

However, tariffs on the Eurozone could strengthen the US Dollar against the Euro. Also, higher inflation may force the US Federal Reserve to start thinking about rate hikes. Once again, that could benefit the USD and may lower the EUR/USD.

But as far as Commerzbank is concerned, they believe that EUR/USD is on its way towards 1.14.

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