EUR/USD continues to hover around parity. Economists at the National Bank of Canada believe the pair could remain in this situation for some time.

ECB appears committed to contain inflation with higher interest rates

“The euro continues to hover around parity with the USD and could remain in this situation for some time. The common currency area is likely headed for negative growth as its economic situation deteriorates.”

“The European Central Bank appears committed to contain inflation with higher interest rates, a development that could help stabilize EUR/USD.”

“We see EUR/USD trading sideways in the coming months before moving higher on the back of trade-weighted USD weakness.”