EUR/USD eyes a fresh challenge of 0.95 over the coming months – HSBC

EUR/USD is trading slightly below parity. Economists at HSBC expect the world’s most popular currency pair to challenge the 0.95 level. 

Risk aversion could pull the euro lower

“We expect the EUR to weaken against the USD, with a fresh challenging of 0.95 over the coming months.”

“The increased risk of a recession in the region that this inflation battle creates may also see the EUR struggle. Risk aversion is another force that could pull the EUR lower.”

See: EUR/USD to decline towards the low-0.90s – Danske Bank