ING’s FX team revises its EUR/USD target upward, citing expected Dollar depreciation amid a dovish Fed stance.
ING’s foreign exchange team has raised its year-end EUR/USD forecast to 1.18, up from its previous projection. The revision reflects expectations of a softer Dollar in the second half of 2024, driven by a more dovish Federal Reserve compared to current market pricing.
The team anticipates moderate Dollar depreciation in the third and fourth quarters, supported by fading energy price pressures. Prior forecasts had not accounted for the Fed’s potential policy shift, which is now seen as a key catalyst for the currency pair’s movement.
No immediate market reaction was specified in the update.