Analysts at ING Commercial Banking claim that as the US demand and global activity are rebounding, commodity prices will find themselves under bullish pressure. In general, the greenback’s expected to continue slightly weakening as long as the Federal Reserve is keeping the interest rates at the record minimum and the US yield curve is steep. The specialists believe that the situation will stay unchanged for the major part of 2011. US yield curve won’t flatten downwards until the end of this year or the beginning of 2012.

According to ING, the European currency may start to catch up with some of the other currencies that are currently trading at the multi-decade maximums versus US dollar such as Australian dollar, Canadian dollar and Swiss franc.

ING forecasts that the pair EUR/USD will climb this year to $1.40-$1.45.



Chart. Daily EUR/USD

More info about FBS