Economists from Credit Agricole CIB Research believe it is likely that the pair EUR/USD remain near recent lows in the near term amid rising geopolitical tensions.
Escalation of the Ukrainian crisis to stoke the headwinds of stagflation that plague the eurozone
“The escalation of the Ukrainian crisis may stoke the stagflation headwinds plaguing the eurozone and may delay the ECB’s exit from its accommodative policies.”
“The relative exchange rate disadvantage of the euro, as well as persistent geopolitical and economic risks, may deter foreign investors from returning to European capital markets in the foreseeable future, while a further worsening of the external imbalances of the euro zone can reduce the net demand for euros by companies”.
“We think EUR/USD could remain close to recent lows in the near term.”
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
