Amid falling energy prices and prophecies of a recession, there is a clear picture that the main economic damage is over, Bloomberg writes..

Strategists at Deutsche Bank AG and Morgan Stanley believe the euro could rise to $1.15 from its current seven-month high of $1.07. Nomura International Plc sees growth to $1.10 by end of month.

" “It was a very good safety cushion for the Eurozone to overcome the recession.”.

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This is a sharp change in sentiment from 2022, when the euro fell to parity against the dollar.. Moderate temperatures across the continent have taken the edge off catastrophic economic scenarios, reassuring investors.

Trends outside of Europe also support the " Many investors expect the dollar to weaken, especially if US inflation eases and the Federal Reserve (the US central bank) ends its base rate tightening cycle.

The fast pace of China's economic recovery is also helping the European economy as supply chain disruptions ease.

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" Stronger US inflation or economic data could also trigger another bout of dollar strength at the expense of the euro if the Fed takes an aggressive stance..

JPMorgan Chase \u0026 Co strategists. remain wary of the economic trajectory, but argue that a more hawkish stance from the European Central Bank will support the euro. Money markets point to ECB tightening around 150 bps this year, while Fed expects 60 bps.

Traders will keep an eye on the latest US inflation data on Thursday for more evidence of easing price pressures..

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Recall that in accordance with the forecasts of the World Bank, this year the world economy will be dangerously close to recession, which will be caused by a decrease in growth in all the leading economies of the world - the United States, Europe and China..

According to the forecast of IMF head Kristalina Georgieva, a third of the world will enter recession this year.