HSBC Warns of EUR/USD Downside Risks Amid ECB Policy Doubts

HSBC strategists see the euro at risk of moving lower against the US dollar, citing headwinds from eurozone growth doubts and the European Central Bank’s cautious policy posture. They note the ECB is sticking to a data-dependent approach and refrains from signaling further rate hikes, which removes a key source of support for the single currency.

The analysts did not provide specific near-term targets but argued that the combination of sluggish economic momentum and a central bank unwilling to pre-commit to tightening leaves EUR/USD vulnerable to renewed selling pressure.