Economists at Erste Group Research expect the EUR/USD pair to hover around 1.08 in the short term. In the medium term, the US Dollar is expected to weaken.

Dollar to weaken slowly in the medium term

“Varying economic data should continue to drive rapidly changing expectations for policy rates in both economies. The environment thus remains very uncertain. However, neither currency should become more attractive.”

“EUR/USD should thus remain in a volatile sideways movement around 1.08 for the time being.”

“In the medium term, we expect a slow weakening of the Dollar, as interest rates should start to fall here earlier than in the Eurozone.”