<p style=““ class=“text-align-justify“>The firm notes that while natural gas pries have corrected lower in the past few weeks, they still represent a source of downside risk for EUR/USD especially. They argue that the euro area growth outlook is continuing to deteriorate and that inflation shows no signs of easing just yet. Adding that:</p><p style=““ class=“text-align-justify“>“The ECB is expected to make additional outsized moves in upcoming meetings (67/58/48 bps priced in for the Sept/Oct/Dec meetings) but hiking into a recession and further widening of BTP-Bund spreads is likely to mitigate any positive impact of higher rates on FX.“</p><p style=““ class=“text-align-justify“>They maintain a bearish bias on EUR/USD and eye further downside in EUR/JPY as well as EUR/CHF. Some snapshots from the report:</p>

This article was written by Justin Low at forexlive.com.