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EUR/USD Fundamental Forecast: Parity in Reach as Headwinds Accrue
In May Germany recorded its first trade deficit since 1991 as the higher cost of imports compounded a decline in exports. In the end, the eurozone’s largest economy recorded a 1 billion euros trade deficit after a surplus of 3.1 billion euros in April. To put the move into context, the May 2021 surplus was as high as 13.4 billion euros which highlights the negative effects of higher imported inflation as a result of the Russian invasion. The trade deficit adds to a number of concerns in the EU as markets look for clues on growth slow downs and potentially, a recession. Has the Boat Already Sailed for the ECB’s ... (full story)