EUR/USD extended its decline towards 1.08 during Asian trading hours, but managed to bounce back towards 1.0850. The economists of Commerzbank believe that the pair could drop below 1.08 due to renewed tensions in Ukraine.
EUR/USD between escalation and recession fears
“EUR/USD is caught between escalation fears, which weigh on the euro, and recession fears, which may put downward pressure on the dollar.”
“As fears of an escalation in the Ukraine conflict are becoming more prevalent at the moment, more real and closer in time to the market, the euro is again under increased pressure.”
“If the signs that there could be a new stage of escalation really intensify, it is very possible that the EUR/USD will fall below the 1.08 mark.”
Source: Fx Street
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