EUR/USD: Year-end forecast stands at 1.00 – ABN Amro

EUR/USD has moved below parity. While economists at ABN Amro expect the euro to remain under pressure, they expect the pair to end the year around parity.

Lower safe-haven demand could result in a recovery of EUR/USD

“An energy crisis and a recession in the eurozone combined with a more aggressive path of rate hikes in the US compared to the eurozone will probably keep the euro under pressure versus the US dollar this year.”

“The recent wave of risk aversion pushed EUR/USD below parity due to safe-haven demand for the dollar. When financial markets calm down somewhat again, lower safe-haven demand for the dollar could result in a recovery of EUR/USD.” 

“Our forecasts for EUR/USD for end-2022 stands at 1.00.”