Economists at Commerzbank have adjusted their projections for EUR/USD. The pair is now expected to trade at 0.95 by the end of the year.
EUR/USD to recover towards 1.05 by end-2023
“The downside risks in EUR/USD have risen as a result of the energy crisis and the expected recession. As a result, we have lowered our year-end projections from 0.98 to 0.95.”
“We continue to expect a recovery in EUR/USD next year but from a lower level. The energy crisis is likely to be priced out and the economic outlook for the eurozone is likely to improve. Moreover, we expect that the US central bank will lower its key rate towards year-end 2023 due to the recession of the US economy.”
“We expect levels of 1.05 in EUR/USD towards year-end 2023.”