- Analytics
- News and Tools
- Market News
- ECB: Increased likelihood of undesirable exchange rate volatility – Commerzbank
ECB: Increased likelihood of undesirable exchange rate volatility – Commerzbank
The Euro remained under pressure on Tuesday. Economists at Commerzbank analyze the common currency outlook ahead of the ECB meeting on Thursday.
ECB facing a bigger communication challenge
After the ECB signalled a continuation of the rate hikes for Thursday’s meeting at its previous meeting, the ECB is likely to find it difficult to move to a less explicit forward guidance without the market initially seeing that as a dovish signal.
However, there are increasing signs that the ECB too is no longer moving on autopilot. Increasing signs of tighter credit conditions in Tuesday's Bank Lending Survey and renewed signs of an economic slowdown in Germany should soon dampen interest rate optimism with regard to the ECB.
The ECB is probably facing a bigger communication challenge than the Fed. That also suggests a higher risk of it ‘going wrong’ – i.e. the increased likelihood of undesirable exchange rate volatility.
© 2000-2025. 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.
Bank transfers
