EUR/USD: Eurozone inflation data unlikely to lift the shared currency – Commerzbank
|EUR/USD has fallen over the past few days. In the view of economist at Commerzbank, inflation data from the eurozone is unlikely to change the Euopean Central Bank’s (ECB’s) cautious course, therefore, the pair is set to stay under pressure.
Difficult for EUR to appreciate significantly against USD for now
“Today’s inflation data from the eurozone is unlikely to provide any new momentum. Some inflation data from individual countries has already been published, and it looks as if the rate of inflation in the eurozone might have crept up further in June.”
“Even an upside surprise is not likely to cause the ECB to implement a larger rate step in July. The majority on the monetary policy council seems to prefer a cautious start, which today’s data is unlikely to change.”
“Medium-term, we assume that USD will ease against EUR as, contrary to the eurozone, we are projecting a recession for the US next year, which is likely to cause the Fed to implement rate cuts.
“At present, however, the market is also likely to see recession risks for the eurozone (energy crisis). And as the ECB is significantly lagging behind the other central banks it is likely remain difficult for EUR to appreciate significantly against USD for now.”
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.