The Nordea economists think EUR/USD will fall to 0.95. A break below this figure would trigger further losses to 0.90.
Lower Current Account Points to Lower EUR/USD
“Although we currently see EUR/USD at 0.95 towards the end of the year, the pair is not far from that level and could easily go down. If this happens, and there is every chance that it will, it will open up the space for EUR/ USD down to 0.90”.
“The energy price shock has affected and will continue to affect the industrial sector, which will cause a negative impact on the terms of trade for the eurozone. Goods that were previously produced in Europe will now have to be imported from other countries where they energy prices have not risen as much as in Europe. worsening trade relationship argues for a weaker euro in the future“.
“For the fortunes of the euro to change, the energy crisis will have to be resolved. This will take time.”
Source: Fx Street
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