What are USD to EUR forecasts?
The US Dollar (USD) has recently experienced modest gains due to a bearish market mood, which increased the safe-haven currency's appeal. This was brought about by escalating Sino-American economic tensions after Beijing banned memory chips made by US tech company Micron. FX analysts expect that tonight's PMIs from S&P Global could potentially dampen USD demand, with a weaker services reading forecasted and factory activity predicted to stall.
On the other hand, the Euro (EUR) traded without a clear direction despite a downbeat market mood that lent the safer single currency some support. Economists believe that the US dollar's strength may eventually reverse in 2023 as the Fed's interest rate hikes cycle comes to an end. The EUR dropped below parity against the greenback in 2022 for the first time in two decades due to the impact of Russian oil and gas threats and uncertainty over European Central Bank interest rate plans. The market view indicates that the overall performance of the Eurozone economy is a major factor affecting the euro exchange rate. In the previous three months, USD to EUR peaked at 60-day highs near 0.9325, which is 1.1% above its 3-month average of 0.9221, trading within a stable 6.3% range from 0.8920 to 0.9483.