If the energy crisis is really over, there is a long way for the Euro to rise, according to economists at Société Générale.

EUR/USD can get close to 1.20 

“Our end-2022 forecast for EUR/USD is 1.12, and we’re conscious that the currency is rising much faster than expected. If we could get our heads properly around the idea that the energy crisis is over despite the war in Ukraine rumbling on and Russian gas flows to Europe having largely dried up, we’d need to raise the forecast to around 1.20.”

“No need for a risk premium due to the fragility of gas supplies? No doubts that the global LNG market can grow in time for next winter? Take out those concerns and European recession risks melt away, leaving all the focus on the ECB.”