EUR/USD range in coming weeks - forecast 0.98 to 1.05

MUFG project a range ahead for EUR EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term/USD in the coming weeks of 0.98 to 1.05

MUFG comments:

• While the US economy looks to be slowing as rate hikes begin to impact sentiment in housing activity, the Fed looks set to hike by 75bps next week which will provide support for the dollar. Only when the FOMC clearly signals a change in policy approach by pausing its tightening cycle will the dollar turn weaker.
• The US rate market is still expecting more front-loaded Fed tightening. The Fed is now expected to deliver two more 75bps hikes in July and September before slowing the pace of hikes in November and lifting the policy rate to a peak of 3.50% by year end.
• The main upside risk to our bearish EUR/USD bias could be triggered by a paring back of energy supply concerns in Europe. The EUR would receive a lift if natural gas supply from Russia returns to more normal levels after the NordStream 1 pipeline maintenance period comes to an end.
• The EUR could be boosted as well by more decisive policy action from the ECB. A combination of a larger 50bps hike this month and convincing plans to keep a lid on fragmentation risk would create a more supportive environment for the EUR especially if snap elections in Italy are avoided as well.

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Also coming today is this from Italy:

• Draghi to announce his resignation in the Chamber tomorrow Also coming today is this from Italy: