EUR/USD to struggle to rise much further as ECB rate expectations are priced in – Commerzbank
|EUR/USD trades around the 1.07 level. However, economists at Commerzbank believe that the shared currency is unlikely to rise further as it is difficult to imagine a more hawkish European Central Bank (ECB).
EUR/USD might have bottomed at 1.04
“Admittedly it is difficult to imagine a significantly more hawkish ECB at present. There are economic uncertainties and risks in the eurozone too which could cause the ECB to act more cautiously, in particular in case we might see an energy crisis. That is why I think that the euro might be unable to rise much further after the market has already adjusted its rate expectations considerably.
“In view of the fact that the ECB now wants to act more decisively against price risks, there is a lot to suggest that the euro might have bottomed at 1.04 in 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.