The euro has found support at nominal dollar rates between 0.96 and 0.97, but Citi’s foreign exchange (FX) strategists believe the euro could weaken around $0.86 against the greenback We see the dollar slumping on October 13, but fiat currencies are rising again, and Citi’s market strategist argues that the U.S. dollar “likely has not peaked yet.”
Citi market analysts suggest the euro may break through $0.93 –
– Financial institution’s FX strategist says EU currency could fall to $0.86 if economic slump continues – Financial institution’s FX strategist says EU currency could fall to $0.86 if economic slump continues
Of the 27 member states of the European Union The euro (EUR), the official currency of 19 countrieshas slumped against the euro in recent years. The euro (EUR), the official currency of 19 of the 27 European Union (EU) member states, has been slumping against the U.S. dollar (USD) for some time now. Since the beginning of the year, the euro has fallen 14.53% against the U.S. dollar and 10.09% in six-month statistics; a 10% decline is painful, but the rate of loss is small compared to fiat currencies such as the Japanese yen, which has fallen 14.99% in six months. (down 14.99% in 6 months), a smaller percentage loss than fiat currencies such as British Pound Yen(down 14.46% in 6 months). (down 14.46% in 6 months), more severe than fiat currencies such as Australian dollar
(down 16.19% in 6 months). (down 16.19% in 6 months).
The euro has gained roughly 0.11% against the U.S. dollar over the past five days, providing some relief; FX market charts show the euro facing resistance in the $0.9818 or $0.9844 range, with fiat currencies ranging from $0.9676 support is seen in the range of $0.9676 to $0.9721. The U.S. Dollar Index (DXY) is hovering above the 113.000 range after briefly falling on Thursday, October 13. Market strategists at financial institution Citi expect the U.S. dollar to rally, according to a Reutersreport
In a report by Reuters contributor Senad Karaametovic, Citi strategists argue that the greenback “likely hasn’t peaked yet,” and detail that analysts expect euro/USD to fall to 0.93 in nominal USD The report also details that analysts expect the euro/USD to fall to 0.93 in nominal USD terms. However, Karaahmetovic reports that the bank’s “FX strategists argue that the measure could eventually reach 0.86 if macro headwinds intensify.” Europe is dealing with an energy crisis and the Economic and Monetary Union is suffering from structural dysfunction tied to the Ukraine-Russia war.
Europe has been dealing with raging inflation and massive public debt. The European Union and many other governments “should default on their debt” (45). On Thursday, Reuters contributor Baratu Kolaniwrote that “four sources close to the discussions said” that the European Central Bank (ECB) estimates that fewer rate hikes are needed to curb inflation in EuropeThe ECB is scheduled to meet on October 27, and markets are expecting the ECB to raise its benchmark rate by75 bpsand is expected to raise it by 75 basis points (bps)
On Friday, news agency Agence France-Presse (AFP)reportedthat two ECB officials said “uncertainty about Russian energy imports is pushing the eurozone closer to a 2023 contraction.”
Image credits: Shutterstock, Pixabay, Wiki Commons
