Euro Likely to Rise Vs Dollar on ECB-Fed Divergence -- Market Talk

Dow Jones04-17 17:47

0947 GMT - The euro could strengthen to $1.22 in 12 months, from $1.1797 currently, as the European Central Bank looks likely to raise interest rates while the Federal Reserve cuts rates, Danske Bank's Kirstine Kundby-Nielsen says in a note. The ECB could raise rates in June and July as inflation rises due to higher energy prices stemming from the Middle East conflict, she says. The Fed is still likely to cut rates, although not until September and December, as the U.S. economy has shown signs of weakness, she says. Danske also expects a normalization of oil prices. "Finally, we expect relatively higher U.S. inflation." All these factors point to a higher euro versus the dollar, she says. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

April 17, 2026 05:47 ET (09:47 GMT)

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