EUR/USD to remain relatively tepid in 2022 – NBF

The euro has depreciated 6.9% in the past twelve months. Overall, economists at the National Bank of Canada expect the common currency to remain relatively tepid in the coming year.

New year, old ways

“Christine Lagarde treads a fine line as the Fed and other major central banks start normalizing policy. Inaction could lead to weakness in the currency which could translate into higher imported inflation.”

“We expect the euro to remain relatively tepid in 2022. The common area will have to contend with supply chain issues and inflationary pressures while the ECB is unlikely to signal a significant change in policy until later this year.”