EUR/USD to take another run towards parity as uncertainty about gas supplies to Europe dominates – Commerzbank

EUR/USD at 1.0037 – old currency traders will still remember that we had already seen significantly lower levels. Economists at Commerzbank expect the pair to take another run towards parity.

US CPI data for June will not hurt the dollar this time

“I imagine that the US CPI data for June will not hurt the dollar this time. Although inflation is expected to have risen to a 40-year high of 8.8%, as our experts expect.”

“After the market tested the parity yesterday, I can imagine that we will take another run towards parity as long as the uncertainty about gas supplies to Europe dominates. After all, it serves as an argument for a weaker euro.”

“And maybe a dip below parity won't hurt that much. However, if the market fears to dive into the cold water, it can always take the US CPI data as a reason to rather push EUR/USD towards 1.01 again.”

See – US CPI Preview: Forecasts from 11 major banks, new peak but at headline