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.
---
