EUR/USD remains heavy after Tuesday’s bounce really could not crack 1.00 and is currently trading near 0.9930. Economists at BBH expect the pair to challenge the September 2002 low near 0.9615. 

ECB officials are acknowledging the risks of recession

“We believe EUR/USD remains on track to test the September 2002 low near 0.9615.”

“European Central Bank (ECB) executive board member Fabio Panetta stressed that monetary policy ‘needs to be strictly data dependent, taking fully into consideration the condition of the euro-area economy. This implies first of all being fully aware that the probability of a recession is increasing in the euro area because of the consequences of the pandemic, the shock to commodity prices of recent months, because of the war and its consequences for trade and uncertainty’.”