Economists at Nordea still hold their view for a higher EUR/USD towards year-end. 

EUR/USD continues to seek higher level

“The Fed is at or near a pause of its rate hikes while the ECB needs to do more, pointing towards a higher EUR/USD. However, it is far from certain that we will get a markedly higher EUR/USD given the fact that markets price in rate cuts from the Fed after the summer. If markets get disappointed, USD negative bets could be reduced. We, therefore, see a movement about sideways in EUR/USD next year.”

“The wild card for the USD remains the higher than usual likelihood of a global recession over the next couple of years, which could be in favour of the USD.”