In its latest client note, analysts at JP Morgan revised down their forecasts for EUR/USD, in the face of the COVID-19 impact.
Key quotes
“One-Year EUR/USD Forecast 1.06, from 1.08 prior.
It will drop under 1.000 if there is a full-blown debt crisis.
Sovereign debt burdens across the globe will surge due to COVID-19.
The currency faces the possibility that “the shock to growth and debt levels could, if sufficiently severe and without debt mutualization, undermine the very structure of the currency itself.
The lack of political solidarity evident in this crisis also risks fuelling emotive anti-EU and anti-euro populism in the periphery.”
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