EUR/USD could quickly fall below parity on recession fears – Commerzbank

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The EUR/USD pair is currently trading in a range of 1.00-1.04. If there is a trigger that catapults the pair out of the range, this breakout will most likely be to the downside.in the opinion of the economists of Commerzbank.

Few reasons why EUR/USD should break out of the current 1.00-1.04 range

“There is currently little reason why EUR/USD should break out of its current 1.00-1.04 range, as there is no fundamentally new information at this time that could lead to a significant change in the Fed’s monetary policy course. or the ECB. But at the same time, the risks for the euro are on the downside.”

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If Purchasing Managers’ Indices show sharp declines in upcoming releaseswhich increases the probability of a recession in the eurozone, the market could quickly drop the euro like a hot potato and push the EUR/USD below parity.”

Source: Fx Street

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