In the view of economists at TD Securities, it is hard to see the fundamentals shifting favourably in the EUR's direction anytime in the near-term. Therefore, the EUR/USD pair is forecast at 0.92 by the end of the year.
EUR likely to remain under pressure
“We don't think the EUR is out of the woods yet and managed to make another forecast downgrade for the months ahead.”
“The biggest driver relates to the feedback loop between the ongoing terms of trade shock and the growth outlook. The ECB has helped to cushion the downside but the EUR remains the shock absorber for these lingering shocks.”
“Our tracking of global and EZ growth drivers points to a push towards 0.92 now.”