Euro/USD Reeling From Pressure
The EUR/USD pair was greeted with bearish inclination at the start of the week, closing below 1.10. Economists at ING are seeing a blurry future for the pair, saying that it might even skid under the 1.09 mark in the next few days.
The raging war has truly done some lasting damage to the Euro’s fair value, with risk sentiment being the main driver. While signs of a truce between Ukraine and Russia provide some support to the Euro, continued optimism should be seen to bolster EUR/USD. Should peace talks be unsuccessful, the pair might slump back to the 2020 low – 1.08 / 1.06.
“We continue to see downside risks for EUR/USD in the near-term, even if peace talks offer some temporary respite, and we still expect a break below 1.0900 soon.”
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