EUR/USD: Approaching 1.19 amid dollar weakness – Commerzbank
|The EUR/USD exchange rate is nearing the 1.19 mark, driven by a depreciation of the Dollar. Analysts caution that unpredictable US policies could lead to a tipping point, resulting in a significant and sustained depreciation of the Dollar. Current market dynamics suggest that unless relations between the US and key Western allies improve, the Dollar's weakness may continue. Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
EUR/USD nearing significant resistance
"Given the unpredictable policies of this US administration, there is a danger that, from the market's perspective, a line will be crossed from which there is no turning back – a tipping point."
"The danger is that the market will price in such a scenario, in which the US dollar depreciates uncontrollably and even if those responsible backtrack, it will be difficult to calm the situation."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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