EUR/USD to extend its downward trend amid geopolitical and recessionary risks – KBC Bank

EUR/USD is in a strong downward trend channel since February. Economists at KBC Bank expect the world’s most popular currency pair to remain under pressure.

Geopolitical and recessionary risks are bigger for Europe

“The dollar remains the main beneficiary of rising US (real) yields in a persistent risk-off context.”

“Geopolitical and recessionary risks are bigger for Europe, holding down the single currency as well even as the European Central Bank finally embraced on a tightening cycle.” 

“Resistance stands at 0.9950/1.0050. The YTD low stands at 0.9536.”