EUR/USD: Break below support at 1.01 to open up a move towards parity – ING

The euro is consolidating near the lows. Economists at ING expect the EUR/USD pair to drop under support at 1.01, triggering a move to parity.

German recession is becoming inevitable

“The gas crisis and what it means for eurozone growth prospects this winter is clearly taking a toll on the euro.”

“A German recession is almost inevitable in the second half of the year.”

“After a month of consolidation, EUR/USD does not look particularly oversold on technical indicators, and we continue to favour support at 1.0100 giving way to a move to parity.”