Oct 5, 2022 5:02 AM ET
By:AnalysisWatch
EUR/USD has turned south and has fallen below 0.9950. Economists at Rabobank expect the pair to drop to 0.95 this quarter.
Trend line resistance is just above parity.
"We remain bullish on the dollar and maintain our 0.95 target for EUR/USD with a one-to-three-month view."
"The single currency lacks the safe haven credentials of the USD, which means the EUR is more susceptible to concerns about slowing growth."
While it is clear that the eurozone faces a difficult winter, in our view, the euro is still missing the energy price crisis facing the region, given the risk that it could drag on for several years.
Over a one-to five-year horizon, this could make the production of some industrial groups unsustainable for Europe. This type of disruption suggests that the euro remains a drag.
"Trendline resistance is just above parity near the 50-day SMA at 1.0015."
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