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The EUR/USD pair has slipped below 1.19 amid fresh dollar strength and economists at BBH expect the world’s most popular currency pair to reach the November 23 low of 1.18 in the short-term.

Key quotes

“Our near-term euro target is the November 23 low near $1.18. Looking further out, the November 4 low near $1.1605 is our medium-term target.”    

“Much remains uncertain in terms of the fundamental trajectory but from a purely technical standpoint, a break below the $1.1620 area would set up a test of the June 2020 low near $1.1170.”  

“The stronger dollar would tend to dampen price pressures here in the US but helping to boost inflation in the eurozone whilst making their exports more competitive.”