Euro could fall to parity with US dollar by summer
EUR could fall to parity with the dollar in the coming months if EU leaders do not show solidarity in supporting economies affected by the coronavirus, says BK Asset Management.
According to the company analyst Boris Schlossberg,EUR/USD rate "remains under pressure" after the decision of the German court on Tuesday "undermined the freedom" of the European Central Bank to establish policies at its discretion. The Germans are "playing with fire," as sentiment in the region is "becoming increasingly polarized," he said. "The next few months will be crucial for the region, but if tensions in the block continue, it is possible to imagine the EUR/USD at parity by the end of summer."
EUR/USD is falling 0.4% to 1.0800 after reaching its 12-day low at 1.0783 earlier.