EUR/USD continues to grind to new lows of the year. Economists at ING expect the world’s most popular currency pair to extend its decline towards the 0.9650 zone.

Eurozone faces some major challenges this winter

“Yield differentials have not been playing a big role in EUR/USD pricing. It is more about the overall environment. Here, the Fed is leading the world's major central banks into more hawkish policy settings and making recessions more likely.”

“As a relatively open economy with a large manufacturing base – and a war on its doorstep – the eurozone faces some major challenges this winter.”

“We suspect EUR/USD continues to grind lower to the 0.9650 area over coming weeks.”