EUR/USD to drop substantially on a break below March 2020 low at 1.0635 – BBH
|EUR/USD is nearing a test of the March 2020 low near 1.0635. Further losses are likely, economists at BBH report.
ECB tightening expectations have eased a bit
“The swaps market is now pricing in 125 bp of tightening over the next 12 months vs. 150 bp at the start of this week, with another 75 bp of tightening priced in over the following 12 months that would see the deposit rate peak near 1.5%. This still seems way too aggressive to us.”
“We look for a test of the March 2020 low near 1.0635. After that is the February 2017 low near 1.05 and then the January 2017 low near 1.0340.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.