EUR/USD has slipped from 1.14 at the end of 2021 to parity. The picture for the European economy is far from rosy and it may already be in the throes of a technical recession. Thus, economists at the National Bank of Canada expect the pair to remain under pressure.

Parity and recession

“The next half of 2022 is unlikely to foster conditions for euro appreciation as the European economy could be in a technical recession.”

“We expect the euro to remain low in the near term and will require improvements for energy prices and supply to catch a bid.”