- Analytics
- News and Tools
- Market News
- EUR/USD: At risk of sliding towards 1.01 if not parity – Westpac
EUR/USD: At risk of sliding towards 1.01 if not parity – Westpac
A proactive European Central Bank (ECB), recent yield surges with inflation and growth concerns are heightening “fragmentation” risks for indebted nations and will pressure EUR, according to economists at Westpac. They highlight that the EUR/USD pair could slide towards parity.
ECB needs to address the risks of “fragmentation”
“Higher debt servicing will exacerbate the cost of living crisis and broader inflation pressures from the conflict in Ukraine.”
“Eurozone dependency on Russian energy is acute in Germany but also across indebted periphery and southern nations, notably Italy and Greece. Consequently, ECB needs to address the risks of spread widening (or ‘fragmentation’) destabilising the eurozone. ECB has called on internal committees to draw up new instruments for ECB to consider.”
“EUR/USD is now vulnerable as it threatens to test 1.0340-50 (lows of past 7 years) amidst risk of sliding towards 1.01 if not parity, EUR needs to regain levels above 1.0550 to reduce current downside risks.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
