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.