EUR/USD to Rise by Year-End, JPY Strengthening on Cards - Nordea 📈💶💵

Nordea expects a rise in the EUR/USD towards the year-end as the Fed is near a pause of its rate hikes while the ECB needs to do more. However, they see a sideways movement in EUR/USD next year due to market expectations of Fed rate cuts. The prospect of a global recession over the next couple of years could favor the USD.

Historic Monetary Policy Normalization Could Bolster JPY 💴💹🔄

Among other currencies in focus for the second half of 2023 is the JPY. Nordea notes that with a new governor at the Bank of Japan and higher inflation, a historic normalization of monetary policy could be underway. This could set the stage for JPY strengthening