Economists at Deutsche Bank are making an adjustment to their EUR/USD forecasts. They expect the world’s most popular currency pair to decline to 1.10 in the first half of the year before bouncing back higher to end the year at 1.15.

EUR/USD forecast at 1.20, 1.25, 1.30 by end-23, 24 and 25 respectively

“We remain bullish on the dollar and see EUR/USD declining to 1.10 in the first half of the year given any shift in ECB messaging is likely to be backloaded.

“We forecast EUR/USD finishing the year at 1.15 in 2022 (from 1.08 previously), and 1.20, 1.25, 1.30 by end-23, 24 and 25 respectively.”