Germany backs joint EU debt to tackle energy crisis. The euro could benefit in the long-term but for now, the EUR/USD pair is set to fall towards 0.92 by year-end, economists at ING report.

EUR/USD to decline into the 0.9540 September lows over coming days

“German Chancellor Olaf Scholz has ultimately given support to a joint issuance of EU debt to fund measures against the energy crisis, with the condition that funds are distributed as loans and not grants. For the euro, the net impact may well be neutral in the near term, potentially positive in the longer run.”

“We still see EUR/USD declining into the 0.9540 September lows over the coming days, and target 0.9200 as a year-end level.”