EUR: Significant economic risks are upon the markets – Commerzbank
|Risks are lurking in the euro zone, and it is now more appropriate to look at the economy rather than inflation, Commerzbank’s FX analyst Antje Praefcke notes.
ECB is likely to focus increasingly on the economy
“The purchasing managers' indices from the euro zone at the beginning of the week and the German Ifo index yesterday briefly reminded the market that risks are also lurking in the euro zone. And these are significant economic risks.”
“The market does not really want to see them at the moment and is pushing them aside since the Fed and the dollar tend to overshadow everything. Nevertheless, they cannot be ignored, especially if the next leading indicators are similarly gloomy and the hard facts should deteriorate.”
“For the euro, too, it is now more appropriate to look at the economy rather than inflation. After all, the ECB is likely to focus increasingly on the economy as well, especially the doves of the Governing Council. Although the euro has weathered the bad data well this week, little strokes fell big oaks. That is why I will keep a close eye on data from the euro area in the coming weeks.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.