EUR/USD forecast: Trump policies likely to be watered down, USD won’t sustain its strength

Commerzbank says the scope for the US dollar to rise further is limited, saying Trump’s main macroeconomic impacting police s will likely be weaker than the bluster:

• import tariffs may well be much less comprehensive than anticipated
• on immigration, there will be some deportations but not enough to generate significant wage pressure
• while Trump’s policies are inflationary, the impact will be limited, Federal Reserve to have little need to raise interest rates

Project EUR/USD to 1.05 in March 2025, than back to 1.07 by the end of that year.

This article was written by Eamonn Sheridan at www.forexlive.com.