The European Central Bank (ECB) is set to continue behind the Federal Reserve in tightening. Therefore, economists at the National Bank of Canada expect the euro to remain under pressure.

Euroarea is postured fore recession

“The ECB is still behind the Fed in tightening and could be limited as the common currency area is postured for a recession.”

“We expect that the euro will remain weak until it becomes clear that the Fed will start easing on monetary policy. As such, euro could see some limited upside in the middle of 2023.”