EUR/USD: Expected correction in the Euro likely to take some time – Commerzbank

On Tuesday, the Dollar appreciated quite a bit and EUR/USD declined below 1.09. Economists at Commerzbank analyze the pair’s outlook.

The market remains on course with its expectations

The market is unlikely to be dissuaded from the view that rate cuts are on the agenda in the near term, given the difficult economic situation and falling inflation.

Without new data pointing to a renewed rise in inflation or a more robust Eurozone economy, the market is unlikely to adjust its current expectations. 

With secondary data due before the next central bank meetings, our expected correction in the EUR is probably likely to take some time.