A snippet from earlier this week via Nordea on the euro.

Nordea see continued gains for the US dollar. On the euro specifically:

  • will suffer from domestic issues
  • the energy-exporting US economy is shielded from the severe effects the energy crisis will have upon Europe’s economy
  • Europe has lately been the epicentre of a perfect storm in energy markets. The energy price shock has and will continue to impact the industrial sector, leading to a negative terms-of-trade shock for the Euro Zone
  • Goods that were previously produced in Europe will now have to be imported from countries elsewhere where energy prices have not risen as much as in Europe
  • Worsening terms of trade argue for a weaker Euro ahead

Forecasts EUR/USD as low 0.90.