EUR/USD should move lower. The broad 1.12/14 range that has held since November 2021 now looks stale and economists at TD Securities expect the pair to settle in a new range marked by 1.10/12.

USD/JPY to move toward 118 over the balance of the year

“We think EUR/USD is now at the cusp of a new lower trading range marked by 1.10/12.” 

“We think USD/JPY has topside risks on the basis that it primarily remains a function of Fed pricing. Not only will the BoJ lag the Fed, but an appreciable pivot is likely to lag the ECB. So, overall, we think it is appropriate to expect yen weakness. We forecast a move to 118 over the balance of the year.”