In the view of economists at Nordea, the EUR/USD has more downside left to go. The pair could easily dip below parity in the months to come.
USD should do well because of its status as the ultimate safe haven
“We believe we are far from a Fed pivot to dovish policy and thus not yet at the peak for the USD.”
“EUR/USD is set to fall below parity to bottom at around 0.97 at the turn of the year.”
“We see the US economy doing better than most other major economies ahead. It has become clear that Europe and Asia will pay a hefty price to keep the lights and heating on this winter, while the US will benefit from its energy independence. Even if you don’t agree and instead expect the US economy to crash soon, the USD should do well because of its status as the ultimate safe haven.”