Current Euro weakness could intensify – NBF

EUR/USD has been on a slide after reaching a high of 1.12 in mid-July. Economists at the National Bank of Canada analyze the pair’s outlook.

Economic conditions worsening in the Eurozone

A combination of a less hawkish central bank, weaker economic indicators and deteriorating market conditions have certainly played their part in the last two months. 

Combining our call for continued US Dollar strength and with economic conditions worsening in the Eurozone, we hold the view that the current Euro weakness could intensify. That said, we do see some improvement further out in our forecast horizon.

EUR/USD – Q4 2023 1.04 Q1 2024 1.03 Q2 2024 1.07 Q3 2024 1.08