EUR/USD: Moderately positive medium-term, not optimistic long-term – Commerzbank
|The sceptre of inflation is back. How inflation concerns are affecting EUR/USD this time round? Ulrich Leuchtmann, Head of FX and Commodity Research at Commerzbank, expects the shared currency to struggle in the long-term.
Moderately positive regarding EUR/USD medium-term
“Whereas core inflation is slowly, but more or less steadily falling in the US, it remains on a firmly rising trend in the Eurozone. That means the ECB has to act in a restrictive manner, or has less scope to ease its monetary policy in the foreseeable future. As a result, I remain moderately positive regarding EUR/USD medium-term.”
“Medium to long-term things are looking differently. The USD seems more resilient against the risks of recession than the EUR because the particular structural problems might emerge during times of a recession in Europe. If it became clear that more rapid QT was required in the fight against inflation the ECB might struggle more with these measures than the Fed. These arguments are the reason why medium to long-term I am not optimistic for EUR/USD.”
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.