Economists at Nordea expect a stronger US dollar in the months to come. In their view, the EUR/USD pair could plunge towards the 0.90 level on the back of risk-off.

The USD will continue to outperform

“The USD will likely continue to benefit from the Fed continuing to hike rates and its status as the world’s predominant safe-haven currency during the coming volatile months for markets.”

“We see EUR/USD down to 0.95 towards year-end, but cannot exclude moves as low as 0.90 in the months ahead.”