EUR/USD to remain under pressure until finding support around 2020 lows of 1.0640 – ING

According to economists at ING, downside risks for the EUR/USD pair remain sizeable as markets may price in more of the adverse impact on the eurozone’s economy of a potential reduction of energy flows from Russia. 

The fall does not look overstretched

“With Russia currently threatening to cut the gas supply to Europe through Nord Stream 1, upside risks to gas prices remain very significant, and so does the downside risk for EUR and the rest of European currencies, with only the gas-exporting NOK and safe-haven CHF being shielded.”

“We think EUR/USD may remain under pressure until finding support around the 1.0640, 2020 lows.”