Friday report on Barclays rating targeting EUR/USD below 1.00. No it’s 1.00 it’s too far!
“If Russia closes its gas taps (to Europe), we expect EURUSD to fall below parity,”
“Our economists estimate that a total loss of Russian supplies, combined with rationing of the rest, could lower eurozone GDP by more than 5 percentage points year on year.”
Heightened concern over Russian gas supplies to Europe has been going on for weeks/months since Russia launched its invasion of Ukraine. As for the euro, it has been heavy all year, with the divergence in monetary policy between a tightening Federal Reserve and a much more hesitant European Central Bank also playing a role.