EUR/USD Plunges Below 1.15 as Strong US Yields Boost Dollar
The EUR/USD exchange rate has fallen to seven-week lows below 1.15 following the Federal Reserve's interest rate hike and hawkish comments from Chair Warsh.
The strong US yields, currently at around 5%, are supporting the dollar, but some analysts believe the Fed may eventually be forced to reverse course as inflation slows in 2027.
CIBC is predicting a Euro gain to 1.20 by June 2027, while Credit Agricole expects a retreat to 1.13 by year-end and a slight gain to 1.14 by mid-2027.