EUR/USD to push slightly below 0.95 over the new year – Nordea
|EUR/USD has moved up from close to 0.95 to trading around 0.98. Nonetheless, economists at Nordea expect the pair to move back lower and bottom around the start of 2023.
A terms-of-trade shock will weigh on EUR/USD
“Some might wonder whether the rally for USD is finally behind us, but we don’t think so and believe this relief rally in financial markets is temporary – we have seen similar episodes many times over the past year.”
“More pain ahead for financial markets will continue to favor safe havens such as the USD. Moreover, the US economy is still resilient and will likely fare better than energy-importing major economies in Europe and Asia.”
“We see EUR/USD pushing slightly below 0.95 over new-year, supported by higher USD interest rate differentials and the term-of-trade crisis in the euroarea.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.