Goldman Sachs sees EUR/USD dip below parity, sees range around 0.96

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  • “We have revised down our baseline growth forecast for the euro area for next year by around 75 basis points, while flagging the risk of a more severe downturn if gas flows from Russia As a rule of thumb, a 75 bps growth downgrade is usually worth around 1.5% on EUR/USD, so moves this week are consistent with the market getting weaker. adapts to this changing outlook and puts some weight on the possibility of an even bigger impact on growth.If the market were to switch to pricing our severe downside scenario, this could send EUR/USD down by 5% extra”, notes GS.
  • “Overall, we see the risks tilting more to the downside over the next few weeks, particularly after the strong US jobs report should keep the Fed on a tightening path and ease fears somewhat. impending recession in the United States,” adds GS.

It seems very likely that Russia will cut gas to Europe as part of its warmongering strategy:

This would bring into play the “severe decline scenario” of Goldman Sachs.

Much of the focus right now is on parity.

1.00 is a big round number for sure.


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