Economists at Commerzbank have changed their EUR/USD forecast. The pair is now expected to reach the 1.10 level in the coming year.

Not another USD year

“With the Fed's expected interest rate turnaround, this is unlikely to remain the case in 2023.”

“If the ECB refrains from cutting interest rates next year – as we expect – the Euro could look less unattractive than this year.” 

“Our EUR/USD price target for 2023 is 1.10.”

See: EUR/USD may get a big boost from rate moves in Q1 – SocGen