EUR/USD to move below parity for a while in the coming weeks – SocGen

In the view of Kit Juckes, Chief Global FX Strategist at Société Générale, EUR/USD is unlikely to break below 0.95. Nonetheless, the pair is set to trade under parity in the coming weeks.

Europe has tapped into global LNG supplies

“The good news, that Europe has tapped into global LNG supplies and is doing a better job of weaning itself off Russian gas, is enough to provide some kind of a cushion for EUR/USD and makes a break below 0.95 less likely now unless the conflict with Russia escalates dramatically.” 

“However, the drag of higher prices on European growth seems sure to get EUR/USD below parity for a while in the coming weeks.”