EUR/USD is trading just below parity. Economists at BBH expect the world’s most popular currency pair to challenge the 0.9865 mark.

Bundesbank noted growing risks of recession in Germany

“With the fundamentals deteriorating, we still look for a test of this month’s cycle low near 0.9865.”

“Bundesbank noted ‘there are increasing signs of a recession of the German economy in the sense of a clear, broad-based and longer-lasting decline in economic output.’ September PMI readings out this Friday should confirm what markets already know, and that is Germany is already in recession.”