- January 11, 2022
- Posted by: Stratford Team
- Category: Economy
© Reuters.
By Yasin Ebrahim
Investing.com – The euro has suffered a bruising encounter against the dollar, but any hope of a reprieve for the single currency in the first half of the year is unlikely given the “clear and present danger” of rising U.S. interest rates, according to Dutch Bank ING.
was down 0.3% to $1.1325, and is down nearly 10% from its recent peak.
The bearish outlook comes in the wake of hawkish comments from European Central Bank board member Isabel Schnabel, who on Saturday warned that the ECB may be forced to act to curb if the EU transition to green energy proves inflationary.
Any uptick in the ECB’s inflation forecast at its upcoming meeting in March could “see expectations build of earlier ECB tightening […] but with “the clear and present danger for tighter [US monetary policy]… we would prefer to back the dollar in 1H22,” ING said.
“[We] favour EUR/USD grinding back towards the 1.1300 area and staying…
