It was a relatively quiet start to the year on the foreign exchange markets. ING economists analyze EUR/USD view.
EUR/USD at the end of the year at 1.1500
Doubts about the timing and speed of central banking easing cycles have contributed to lower levels of volatility and the search for yield.
Assuming the Fed is going to cut rates in May/June, the bullish steepness of the US curve should be positive for most active currencies – including the Euro.
We still predict that EUR/USD will finish the second quarter somewhere near 1.1000 and end the year at 1.1500.