HSBC Bank Experts Forecast EUR/USD Performance

Experts at HSBC Bank have released their predictions for the performance of the Euro-Dollar (EUR/USD) pair over the coming year, taking into account the anticipated actions of the European Central Bank (ECB) and their potential effects on economic growth and unemployment rates in the Eurozone.

The economists expect that the ECB will likely reduce interest rates by 25 basis points in December, a move that is expected to provide short-term support to the Euro. However, they also highlighted concerns over rising unemployment in Europe, which poses a more significant long-term risk. With unemployment rates expected to increase across the Eurozone, the ECB may be forced to expedite further interest rate cuts to address the rising joblessness, potentially putting downward pressure on the Euro.

As a result, HSBC experts forecast that the EUR/USD pair could fall to 0.99 by the end of 2025, driven by the broader economic implications of these expansionary monetary policies and concerns over the impact of higher unemployment on the Euro.

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