Euro to Dollar Exchange Rate Forecast: 1.0650 in View

There are anticipations at CIBC (Canadian Imperial Bank of Commerce) by market analysts of a EUR/USD fall as a result of the initial hike in Fed rates, there might be further decline on the currency pair as some economists predict another hike as early as Q1.
The first rate hike is now history, economists are already predicting a new rate raise. “The Fed might tighten again in q1 during the 16  March meeting and pause” says Jeremy Stretch of CIBC.
”The widening rate spreads in to Q1 will affect the USD positively. Front end spreads are expected to continue to move in favor of the US. This is as a result of two year yields which again rose above 1.0% for the first time since April 10.
“As the broad Usd uptrend looks more mature, there is a likely extension of Usd gains through Q1 as markets are made to increasingly price Fed normalization next leg.
In terms of Eur/Usd, there is a need to break below 1.0795/0805 to aid a break in the direction of 1.0650, but patience is needed.

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