The economists of rabbank They see the risk that the EUR/USD falls to 1.03 on a one month and three month perspective. What’s more, a clear break from the 2017 low at 1.0341 would make the pair realistic for the cross.
Growth woes are depressing the medium-term outlook for the EUR
“Despite the risk that the Fed will have no choice but to push the US economy into recession in 2023 to regain its credibility in fighting inflation, we now expect the dollar to continue to find solid support over the medium term, as “Global growth fears underpin haven demand. Euro likely to be more sensitive to recession fears.”
“The risks facing the eurozone are closely tied to energy security, while slowing growth in China will be another thorn in the side of the single currency.”
“We have recently revised our dollar forecasts higher overall and lowered our one-month and three-month targets for EUR/USD to 1.03.”
“A clear break from the 2017 low at 1.0341 would make the parity a realistic target for the currency pair..”
Source: Fx Street