Economists at ANZ are concerned about fiscal challenges facing the EA, while the EUR/USD long-term bearish resistance is intact.
Key quotes
“We expect multi-year support at 1.05 to eventually give way, with the pair likely to break below par in late 2020.”
“Our forecasts are for EUR/USD to head toward par in Q3 2020 before troughing at 0.98 in early 2021. If Brussels cannot alleviate the fiscal straitjacket facing the EA’s more fiscally challenged economies, the risks of a deeper decline in the euro cannot be ruled out.”
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