EUR/USD has traded fairly choppily this morning around the 1.02 level. Looking ahead, economists at Rabobank continue to see further downside potential for the EUR on a one to three-month view.

USD to remain well supported

“Although we would expect the EUR/USD 1.01 area to act as solid support going forward, we retain the view that EUR/USD is likely to drop back below parity again on a one to three-month view. However, for this to happen USD strength will likely have to be complemented with another bout of fresh EUR negative news.”

“In our view the value of the USD is likely to remain firm until the environment for risky currencies improves. This suggests scope for a firm USD well into 2023.”