TD Securities economists believe that the EURUSD to return below parity despite recent rally.
EURUSD is likely to bottom around 0.96
“The euro is yet to come out of the woods, which makes us expect another trip below parity to start 2023.”
“The macroeconomic outlook offers a weak pass-through to the EUR to start a new year. The euro is closely tied to European and global growth expectations. We don’t expect the global outlook to bottom out until the second quarter.”
“The EUR is also exposed to a winter terms of trade shock, especially if the weather is colder than expected.”
“EURUSD is likely to bottom around 0.96, paving the way for a strong recovery in the second half.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
