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EUR/USD: Some upside potential in the short term – Commerzbank

by FX BrokerNews

According to analysts from Commerzbank, the likelihood of a weaker Dollar in the medium to long term is not anticipated. Consequently, positive developments for the Euro are deemed more probable in the short term only.

A strong Dollar is justified in the long run


There appears to be some potential for upward movement in the short term for the EUR/USD pair.

A positive boost in Eurozone inflation, coupled with a coordinated entry of both the Federal Reserve (Fed) and the European Central Bank (ECB) into the rate-cutting cycle, is expected to exert a modest net positive influence on the Euro.

Nevertheless, in the medium term, there seems to be no grounds for expecting weakness in the USD. The ongoing strength of the USD is deemed justifiable, particularly if, as we anticipate, the United States maintains a growth advantage over the Eurozone and most other Western industrialized nations throughout our entire projected timeframe.

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