Citi Trims Euro Target as Hawkish Fed and Iran Tensions Weigh on the Currency
Deep News
5 hours ago
Citigroup currency strategists expect the euro to weaken against the US dollar, citing a more hawkish Federal Reserve and renewed tensions between the United States and Iran.
"With AI tailwinds, attractive real rates, and a rising euro-related risk premium, US capital flow dynamics remain supportive of the dollar," Citigroup's Daniel Tobon and Brian Levine said in a report.
The Citigroup strategists cut their three-month euro/US dollar forecast to 1.135 and lowered their six-to-twelve-month projection to 1.13.
The euro/US dollar pair fell as low as 1.1161 on Monday, as France's budget dispute and election turmoil led investors to assess the risks facing French bonds.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.