DBS Sees Euro Supported by Policy Divergence Against USD

DBS Group Research strategist Philip Wee argues that the euro (EUR) is likely to gain support against the US dollar (USD) in the near term.

The view is based on expected policy divergence between the European Central Bank and the Federal Reserve. According to Wee, markets are reassessing geopolitical risks and central bank stances, which could favor the euro.

No additional details on specific rate expectations or timelines were provided in the note.