📝 See EUR/USD Spot Pushing Below Parity In Months Ahead: Credit Suisse FX Strategy

We still refuse to rule out moves like EURUSD pushing below parity in the months ahead, given the asymmetry we still sense in the direction of still-higher US rates. See the Fed raising interest rates by 250bps in 2022, and 100bps in 2023, this is more aggressive than the market consensus. With the BoJ being more dovish than expected, we see USD/JPY resuming its rally after the Fed's May meeting; see a dollar-yen trading range of 1258.8-135.2, will fade moves above 135.0. With limited prospects for additional monetary policy support in the near-term and a deteriorating Chinese growth outlook ahead, we now anticipate further USD strength against G10 commodity FX. - Credit Suisse FX Strategy