JP Morgan are looking for the pair to drop to 1.14 by December and then further in 2022.
Forecasts:
- 1.14 by December (from 1.16 previously)
- 1.12 in 2022
Citing:
- We are bringing forward and extending the projected slippage in EUR to reflect these developments, but principally the increased uncertainty about the duration of a soft-patch in global growth that is now impacting the Euro area as well.
- European industry has been wrestling with supply disruptions for some time - German car output is 50% below pre-pandemic levels - and to compound matters there is now a potentially major drag from the surge in natural gas prices, to which Europe is particularly exposed.
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