The EUR/USD pair continues to consolidate near parity. But the HSBC economists expect the pair to hit new year-to-date lows in the coming weeks.
The risks of the next general elections in Italy do not seem onerous
“Although the EUR/USD pair is providing an anchor for now, we expect the pair to break new year-to-date lows in the coming weeks on a combination of USD strength and the series of challenges ahead. faces the eurozone economy (such as recession risks and high inflation).”
“On a positive note, the risks from Italy’s upcoming 25 September general election do not appear onerous, while our economists note that the tone of the campaign has been dovish and there have been no strong euro skeptics. If there are downside risks to the euro stemming from Italian political developments, they seem unlikely to materialize this month..”
Source: Fx Street