EUR/USD: Limited upside scope from here into year-end – MUFG

Economists at MUFG Bank see limited upside scope for EUR/USD from here into year-end.  

EUR upside limited from here 

“ECB is set to signal more rate hikes but we expect terminal rate to be reached in Q1.”

“There is a high expectation of balance sheet policy being updated with confirmation of QT commencing so it is unlikely to have much bearing on EUR performance.”

“Given annual inflation may have only just peaked in the euro-zone, the tone of the ECB press conference is likely to still be hawkish but with the implied terminal rate at around 2.75%, we doubt rates or FX will advance notably higher in the aftermath.”