Economists at ANZ Bank expect the EUR/USD pair to race higher toward 1.14 by the end of the year.

Relative fundamentals are positive for the EUR vs the USD

“The Euro remains under-valued based on our fair value models and as interest rates between the ECB and Fed narrow, we expect the EUR to outperform.”

“We forecast the EUR/USD to be at 1.14 at year-end as the ECB’s hawkish stance will provide a tailwind for the Euro.”

“While the EUR/USD pair might experience volatility due to the vulnerabilities in the global banking sector, we believe relative fundamentals are positive for the EUR vs the USD.”