Economists at Wells Fargo expect weakness in the euro to persist. They believe that the EUR/USD could fall as low as 0.91 by the first quarter of the next year.

Confidence surveys are now clearly pointing to contraction

“High and rising inflation should continue to weigh on the consumer, and energy supply disruptions could more directly impact manufacturing activity.”

“Confidence surveys are now clearly pointing to contraction, especially for Germany– the region's largest economy.” 

“While the European Central Bank should raise rates further, underwhelming Eurozone growth should see it lag well behind the Fed, another factor that could see the EUR/USD exchange rate reach 0.9100 by Q1-2023.”