Economists at Commerzbank expect the US dollar to enjoy only mild appreciation through the end of the year. Therefore, the EUR/USD pair is expected to trade at 0.98 by end-2022.

USD to have only limited upside potential until next year

“The dollar will have only limited upside potential until next year when the time has come to prove that the Fed will remain steadfast.”

“The dollar strength this morning should not disguise the fact that the reaction to Powell’s speech was disappointing. Against this background, we are happy with our EUR/USD projections of 0.98 by year-end.”