EUR/USD has moved below parity. While economists at ABN Amro expect the euro to remain under pressure, they expect the pair to end the year around parity.
Lower safe-haven demand could result in a recovery of EUR/USD.“An energy crisis and a recession in the eurozone combined with a more aggressive path of rate hikes in the US compared to the eurozone will probably keep the euro under pressure versus the US dollar this year.”
“The recent wave of risk aversion pushed EUR/USD below parity due to safe-haven demand for the dollar. When financial markets calm down somewhat again, lower safe-haven demand for the dollar could result in a recovery of EUR/USD.”
“Our forecasts for EUR/USD for end-2022 stands at 1.00.”
EUR/USD recovers toward 0.9700 ahead of US data
EUR/USD has gathered recovery momentum and climbed toward 0.9700 during the European trading hours on Thursday. The cautious market mood limits the pair’s upside for the time being as investors await the second-quarter GDP data from the US.
EUR/USD News
GBP/USD faces resistance at 1.0900
GBP/USD has failed to reclaim 1.0900 following the latest recovery attempt and retreated to the 1.0850 area on Thursday. The risk-averse market environment helps the dollar stay resilient against its rivals. Focus shifts to the second-quarter US GDP report.
GBP/USD News
Gold stays in negative territory near $1,650
After having registered impressive gains on Wednesday, gold reversed its direction and dropped toward $1,640. Although the yellow metal managed to recover to $1,650, it continues to trade deep in negative territory amid a more-than-2% increase in the 10-year US T-bond yield.
Free Forex Signals 