EUR/USD is trading at 1.0023 at the time of writing. A more decisive break below parity is possible, economists at ING report.

0.98-0.99 seen as a potential short-term bottom

“The potential re-pricing higher in Fed rate expectations is another element of downside risk for EUR/USD, along with the already negative macro picture and the growing risk premium related to the Russia-EU spat on gas supply. 

“Another attempt at breaking below 1.00 appears likely over the coming sessions, and this time we could see a more decisive move lower.”

“We continue to see 0.98-0.99 as a potential short-term bottom for EUR/USD.”