“Winter is coming for the EUR” – EUR/USD seen as low as 0.90

A snippet from earlier this week via Nordea on the euro.

Nordea see continued gains for the US dollar. On the euro specifically:

• will suffer from domestic issues
• the energy-exporting US economy is shielded from the severe effects the energy crisis will have upon Europe’s economy
• Europe has lately been the epicentre of a perfect storm in energy markets. The energy price shock has and will continue to impact the industrial sector, leading to a negative terms-of-trade shock for the Euro Zone
• Goods that were previously produced in Europe will now have to be imported from countries elsewhere where energy prices have not risen as much as in Europe
• Worsening terms of trade argue for a weaker Euro ahead

Forecasts EUR/USD as low 0.90.

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