EUR/USD: Inflation might become an issue for the euro again – Commerzbank
|The inflation data from Germany, Spain and Belgium will give a first taste of the eurozone inflation data for September tomorrow. In the opinion of economists at Commerzbank, inflation could cause trouble for the euro again.
Inflation as a euro risk
“If the economy cools significantly over the coming weeks and if the ECB begins to conclude from that that this might increase inflation pressure to such an extent that more cautious rate hikes might be required, inflation might very soon become an issue for the euro again.”
“If the FX market does not share the ECB’s view there is a risk of higher inflation, which the ECB is not countering with an adequate tightening of monetary policy, putting significant pressure on the single currency.”
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