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.
“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.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.