Economists at Commerzbank have changed their EUR/USD forecast. They expect levels only slightly below parity and continued recovery of the EUR/USD exchange rate in 2023.

Recession and weak euro

“Because we now expect a recession in the euro area in our base scenario, we anticipate EUR/USD exchange rates around and below parity by the end of the year.”

“For 2023, we continue to expect a recovery of the EUR/USD exchange rate but have become more cautious. Our EUR/USD price target for 2023 is now only 1.10.”