Economists at Nordea believe EUR/USD will fall to 0.95. A break below here would open up further losses to 0.90.

Lower current account points toward lower EUR/USD

“While we currently see EUR/USD at 0.95 towards year-end, the pair is not far from that level and could easily come below. If this happens, and there is a good chance it will, then the room will open for EUR/USD moving as low as 0.90.”

“The energy price shock has and will continue to impact the industrial sector, leading to a negative terms-of-trade shock for the eurozone. Goods that were previously produced in Europe will now have to be imported from countries elsewhere where energy prices have not risen as much as in Europe. Worsening terms of trade argue for a weaker euro ahead.”

“For the euro’s fortunes to turn around, the energy crisis will need to be resolved. This will take time.”