EUR/USD set to move downward over coming months – Rabobank

FXStreet Insights Team FXStreet

There have been a lot of developments in factors that have driven both USD strength and EUR weakness. Thus, economists at Rabobank are minded to push their outlook for the EUR/USD pair further down.

Eurozone is likely to fall into recession this winter

“Not only do we see the EUR vulnerable to Eurozone recession risks, but we expect that the value of the USD is likely to remain elevated into 2023.”

“If the Nord Stream 1 natural gas pipeline is switched back on fully, in time next week after its scheduled maintenance, the EUR is likely to be granted a reprieve. However, politicians are fearing that the flow may be insufficient for Europe to fully strength their gas reserves ahead of the winter.”

“Natural gas flows will be instrument in guiding the outlook for the EUR in the months ahead. That said, even if the EUR is boosted, we expect USD strength to dominate into next year suggesting upside for EUR/USD could be limited even on good news regarding Nord Stream.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD loses the grip, returns to the sub-1.1800 zone

EUR/USD extends its daily pullback, slipping below the 1.1800 mark and hitting fresh multi-day lows ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with investors continuing to digest the so-called “Warsh trade” while weighing the latest US data releases.

GBP/USD bounces off lows, retests 1.3640

GBP/USD adds to Friday’s losses, reaching six-day lows near 1.3620, although regaining some composure soon afterwards. Indeed, Cable’s pullback comes amid the ongoing solid performance of the Greenback, while traders also begin to turn their attention to the upcoming BoE meeting.

Gold looking to stabilize below $4,700

Gold remains under heavy pressure in quite a negative start to the week, hovering around the $4,600 region per troy ounce and retreating for the third day in a row. The yellow metal’s decline comes amid strong gains in the US Dollar, the broad-based rebound in US Treasury yield and the deep sell-off in the precious metals’ space.

Ethereum Price Forecast: ETH bounces off $2,150 as Bitmine stretches holdings above 4.28 million ETH

Ethereum (ETH) treasury firm Bitmine Immersion Technologies (BMNR) scooped 41,788 ETH last week in another round of weekly ETH acquisition.

Warsh effect ripples through markets, central banks on deck this week

The first full month of the year is behind us, and, honestly, it has been rather more dramatic than most had anticipated when toasting the New Year. We wrapped up last week with US President Donald Trump announcing his Fed Chair pick.

Ripple steadies after sell-off as low on-chain activity, retail interest weigh

XRP rebounds from last week’s support at $1.50 but struggles below resistance at $1.77. Active addresses on the XRP Ledger dropped below 18,000 on Sunday amid risk-averse sentiment. Retail interest in XRP continues to decline, with futures Open Interest dropping to $2.81 billion.