Euro Likely to Rise vs Dollar if Fed Avoids Raising Rates
Dow Jones17:59
0959 GMT - The euro could strengthen modestly against the dollar by year-end as the Federal Reserve is likely to refrain from raising interest rates, ING's Francesco Pesole says in a note. There is plenty of scope for front-end Treasury yields and the dollar to fall if the Fed keeps rate unchanged, he says. The Fed could sound gradually more cautious about raising rates, he says. "Our target for [the euro] in the coming weeks remains $1.160, followed by $1.17 in autumn and $1.18 by year-end." However, any renewed escalation in the Middle East conflict would support the dollar, he says. The euro trades flat at $1.1529.
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