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Higher 'natural' interest rates in Europe could strengthen EUR/USD beyond 1.30 - SocGen

Higher 'natural' interest rates in Europe could strengthen EUR/USD beyond 1.30 - SocGen
Societe Generale states that 'natural' interest rates can provide insights into how currencies might behave under equilibrium conditions. When one country has a higher natural rate than another, it is likely to have a strong currency when both economies maintain neutral monetary policy and stable inflation. According to the bank, recent estimates from the New York Fed suggest that Europe's natural (real) interest rate has risen from 38 basis points in mid-2020 to 83 basis points now, while the... Read More
Posted: May 25 2023, 18:59
Author Name: forexlive
Views: 081460

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