Analysts at Danske Bank believe that the state of the global economy will be crucial for the dynamics of exchange rates in 2023. The bank's review says that all forecasts for the next year are based on the strengthening of the US dollar and the tightening of financial conditions in the world. However, if inflation concerns quickly fade away, the prospects for the foreign exchange market will be different. Because the US Federal Reserve System may make a U-turn in its policy of aggressive rate hikes. To date, market participants believe that the US currency will decline in 2023, but Danske Bank is still skeptical about the justification of such optimism. Analysts believe that a fair assessment of the EUR/USD pair is closer to $0.9. Experts also expect that inflationary pressure will weaken in the US faster than in the eurozone, which may put strong pressure on the single European currency. Therefore, in the absence of any positive developments, the euro may go down. In general, analysts adhere to the «bearish» forecast for the EUR/USD pair, as many negative economic factors will continue in 2023. On the other hand, the lifting of anti-bullying restrictions in China may have a positive impact on the eurozone economy and its currency. According to forecasts, the euro exchange rate will be around $1.05 in the next month, $1.02 – in three months. At the same time, experts raised the estimate in twelve months to $ 0.98 from the previously expected $0.93.
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