The EUR has corrected lower against the USD so far in February. Economists at MUFG Bank expect the world’s most popular currency pair to continue its decline.
Stronger cyclical outlook for the Eurozone economy is better priced in now
“The EUR’s recent loss of upward momentum could reflect that the stronger cyclical outlook for the Eurozone economy is better priced in now.”
“The EUR would be vulnerable to a further correction lower if core inflation was to fall more quickly as well in the coming months.”
“We see room for EUR/USD to continue correcting lower in the near-term.”
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