Market Outlooks and Currency
EUR/USD: Analysts projected a modest rise in EUR/USD due to a slowdown in the U.S. economy and anticipated Fed rate cuts. However, potential obstacles included deteriorating eurozone growth and ECB rate cuts, which could weaken the euro.
GBP/USD: The British pound gained strength early in the year, supported by the Bank of England's aggressive rate hikes. However, expectations of rate cuts in the latter half of 2024, driven by cooling inflation, suggested potential weakening of the pound.
USD/JPY: The Japanese yen was the biggest loser in 2023 but showed signs of recovery in 2024. Speculations about the BoJ adjusting its monetary policy and anticipated Fed rate cuts contributed to the yen's strengthening against the dollar.