Morgan Stanley estimates a decline in the value of the euro.

2024-09-19 09:06:35

(MENAFN) Investment bank, Morgan Stanley predicts that the euro will decrease in value compared to the United States dollar and reach parity in the coming months due to increasing political risk as well as economic fragility.

David Adams, the head of Group-of-10 foreign-exchange strategy at Morgan Stanley, predicted in an interview with Bloomberg that the European single currency will fall to 1.02 against the greenback by year-end, representing a depreciation of approximately 7 percent from its current levels.

As per the strategist's analysis, there is an expectation that the European Central Bank (ECB) will continue implementing interest rate reductions in the next three meetings, including the potential for a significant 0.5 percent rate decrease.

Adams stated: “There is plenty of scope for the market to refocus on the fact that the ECB could be cutting deeper and faster than what is currently priced”.

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