Rabobank: Euro’s rally may not last amid energy crisis

The euro was boosted by easing gas prices and hopes that Germany may face a reduced risk of recession, but the recovery may be short-lived.

Jane Foley, foreign exchange strategist at Rabobank, said in a note: “In the spring and summer of 2023, Europe may struggle to replenish natural gas reserves at current prices. supply competition.”

With the next gas price crisis looming, EUR/USD could fall below parity next year, Foley said.