EUR/USD to bottom at 1.08 by the end of this year – Nordea

In response to rampaging US inflation, economists at Nordea now expect the Federal Reserve to hike rates four times this year followed by another four in 2023. They see more upside for long yields and expect EUR/USD to bottom by the end of the year.

The Fed is turning more hawkish by the day

“The Fed to hike rates four times both this year and next and also decide to start contracting the balance sheet during the summer.”

“The ECB to stop net bond purchases in the first half of 2023 and raise rates towards the end of next year.”

“EUR/USD to bottom at 1.08 at the end of this year and already rebound sharply in 2023.”

“US 10-year yield to rise to 3% by the end of next year, but the bulk of the increase is likely to be seen already this year.”