EUR/USD has tested the 0.99 area. However, the pair is set to remain under parity, in the opinion of economists at BBH.

Raising recession risks

“Moves above 1.00 will be hard to sustain and so the single currency remains on track to test the September 2002 low near 0.9615.”

“Germany, Italy, and now France are contracting and it's only going to get worse this fall/winter when energy shortages really bite. Sure, the US faces recession risks too but we still think that Europe is in much weaker fundamental shape.”