August 26, 2024 at 07:06AM
• The bank suggests that EURUSD is overvalued, and that the pair has overshot its fundamentals
• Thinks near-term fair value is closer to 1.10 for EURUSD
• They expect better US data in coming months to push back on excessive rate cut expectations to support the USD
• Believes 100bp of cuts priced for the Fed by year-end is excessive
This article was written by Arno V Venter at www.forexlive.com.
Conditions for sustained USD weakness not fully in place