While the euro has found support between 0.96 a 0.97 nominal U.S. dollars per unit, foreign exchange (FX) strategists from Citi believe the euro could tap a low of around $0.86 against the greenback. While the dollar slumped on October 13, the fiat currency is rising again and market strategists from Citi argue that the U.S. dollar “has likely not peaked yet.”
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Citi Market Analysts Suggest Euro Could Tap $0.93 — Financial Institution’s FX Strategists Say EU’s Currency May Slip to $0.86 if Economy Continues to Sour
En tiempos recientes, the official fiat currency of 19 fuera de 27 member states of the European Union (UE), la euro (EUR), has been in a slump against the U.S. dólar (Dólar estadounidense). Year-to-date, the euro has lost 14.53% against the greenback and six-month stats indicate the EUR is down 10.09%. Mientras que la 10% shave hurts, the percentage loss is less severe than fiat currencies like the Japanese yen (abajo 14.99% in six months), the U.K.’s pound sterling (abajo 14.46% in six months), and the Australian dólar (abajo 16.19% in six months).
The euro has seen some relief during the last five days, gaining roughly 0.11% against the USD. The fiat currency has found support between $0.9676 a $0.9721 per unit as FX market charts show the euro faces resistance in the $0.9818 o $0.9844 rango. Los Estados Unidos. Dollar Index (DXY) is hovering above the 113.000 rango, after the index saw a brief slide on Thursday, Octubre 13. De acuerdo a un reporte from Reuters, market strategists from the financial institution Citi expect the U.S. dollar to climb higher.
Reuters’ contributor Senad Karaahmetovic’s report details that Citi’s strategists insist that the greenback “has likely not peaked yet,” and the analysts envision EUR/USD dropping to 0.93 nominal U.S. dolares. Sin embargo, Karaahmetovic’s report says the bank’s “FX strategists argue that the major could eventually hit 0.86 if macro headwinds increase.” Europe has been dealing with an energy crisis and the economic and monetary union has suffered from structural dysfunctions tethered to the Ukraine-Russia war.
Europe has been dealing with torrid inflation and significant high quantities of public debt. It has been dijo that the European Union and many other governments “should default on their debt.” On Thursday, Reuters’ contributor Balazs Koranyi escribió that “four sources close to the discussion said” that the European Central Bank (BCE) estimates that fewer rate hikes are needed to curb Europe’s inflation. The ECB is scheduled to meet on October 27, and markets are forecasting the central bank to increase the benchmark rate by 75 puntos básicos (bps).
El viernes, the news agency Agence France-Presse (AFP) reportado that two senior ECB officials say “uncertainty about Russian energy imports is pushing the eurozone closer towards a contraction in 2023.”
What do you think about the Citi FX strategists that say the euro could drop to $0.86 against the greenback? Háganos saber lo que piensa sobre este tema en la sección de comentarios a continuación..
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