EUR/USD has briefly moved below 1.0500, sitting at the lowest level since January 2017. A clear break below this level would open the doors to the 1.0350 area.according to economists at ING.
35% chance of EUR/USD reaching parity this year
“The currency options market allocates a 35% chance to the EUR/USD trading at 1.00 anytime before the end of the year. This is up from the 25% seen earlier this week and just 15% a couple of weeks ago.”
“Of the many concerns facing European currencies, the most pressing is an abrupt cut in Russian gas in general in Europe. How this story unfolds and the degree to which the eurozone economy is affected (estimates range from 1-3% of eurozone GDP in full cut) will help determine EUR/EUR levels. USD”.
“EUR/USD remains fragile and a clean break of 1.0500 would open the gates to the 1.0350 region“.
Source: Fx Street
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