Danske Bank: Euro may rise against the US dollar due to diverging policies of the European Central Bank and the Federal Reserve.

Kirstine Kundby-Nielsen of Danish bank stated in a report that the euro could rise from its current rate of 1.1797 USD to 1.22 USD within the next 12 months, as the European Central Bank appears likely to raise interest rates while the Federal Reserve is expected to cut rates. She mentioned that due to the rise in energy prices caused by conflicts in the Middle East, inflation is expected to increase, leading to potential interest rate hikes by the European Central Bank in June and July. She also stated that the weakening signs in the US economy may prompt the Federal Reserve to cut rates, but this action is not expected until September and December. The Danish bank also predicts that oil prices will stabilize. "Finally, we expect US inflation to be relatively higher," she said, pointing out that all these factors suggest that the euro will rise against the dollar.