EUR/USD dipped towards 1.08 in early March but has since bounced back above 1.11. Economists at Nordea think the pair may have already bottomed, and forecast EUR/USD at 1.13 by year-end.

Dollar will see the upper hand slip away

“We expect the USD to remain well supported in Q2, but expect the EUR/USD to revisit 1.08 or lower levels only if we get another spell of severe risk aversion. Hence, we see EUR/USD in a range of 1.08-1.12 the next three months.”

“During the second half of the year, we expect to see the US economy cooling off and the dollar to trade with light headwind. We see EUR/USD heading towards 1.13 towards the end of the year.”