Currencies Outlook

Are Biden's declining re-election chances and the adoption of AI going to make the difference for currency markets?

Recently, EUR/USD sentiment has improved. Disappointing American growth and better-than-expected inflation data have increased optimism that the Fed will cut interest rates soon, while Christine Lagarde stated that the ECB intends to take it easy on interest rate cuts for the time being. Will this continue?

EUR/USD has mostly shown a sideways pattern over the past two years. However, we expect political developments will increasingly influence this currency pair with more volatility as a result...