EUR/USD: Recovery seen over the past days unlikely to be sustainable – Commerzbank
|The euro was able to appreciate during the course of the trading day. In the view of economists at Commerzbank, the recovery is not sustainable.
Doves might sound more cautious again
“Inflation and above all core inflation is likely to remain at high levels thus requiring further aggressive monetary policy tightening. The uncertainty of whether the ECB would be willing to do that is likely to put pressure on the euro over the coming weeks.”
“If the ECB has to retract its comparatively optimistic economic projections as signs of a recession rise, the doves on the board might sound more cautious again.”
“The recovery in EUR/USD seen over the past days is unlikely to be sustainable. We see the risk of the market being disappointed in its expectations of the ECB with this being reflected in falling EUR levels.”
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.