The euro is trending lower against the US dollar. Economists at Credit Suisse expect the EUR/USD pair to decline towards the 0.92 area.

Selling on rallies to 1.0000

“EUR/USD remains in a downtrend with levels as low as 0.9200 possible if fiscal difficulties pick up or Russia-related energy difficulties worsen. But with near-term short-covering possible, we favour selling on rallies to 1.0000 and above within a 0.9200-1.0200 expected Q4 range, assuming that corrections can extend by at least 4% from each new low based on recent precedents.”

“The market is very conscious of the risks of a deep euro area recession and the possibility of major hits to both consumer spending and industrial production. Fiscal outlays will need to fill many gaps.”