DJ Euro Could Fall to $1.10 on Faster US Recovery Vs Eurozone -- Market Talk

· 02/05/2021 05:01

1001 GMT - The euro could fall to a range of $1.10 to $1.15 in coming months, from $1.1982 currentl,y as the U.S. economy's recovery is expected to outpace the eurozone's, Nordea Asset Management says. The U.S. could relax coronavirus restrictions sooner than the eurozone due to a faster vaccine rollout, which combined with the prospect of large-scale fiscal stimulus, should support the U.S. economy, Nordea analyst Sebastien Galy says. "This should drive the U.S. Treasury curve to steepen and bring forward a tad expectations of rate hikes," he says. A steepening yield curve is when the gap between short-term and long-term government bond yields widen and typically indicates investors expect stronger economic growth and rising inflation. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

February 05, 2021 05:01 ET (10:01 GMT)