Eurozone inflation data for January could provide a slight boost to the Euro. However, Commerzbank economists report that, for the time being, the bottom is likely to remain the weakest.
Dark clouds are gathering over the manufacturing sector
“Despite the fact that the ECB representatives have been restrictive of late, a high inflation result today could push rate expectations for the euro zone up again, which would provide short-term support for the euro zone.” Euro However, yesterday’s purchasing managers’ indices (PMI) for the euro zone showed that Dark clouds are coming for the manufacturing sector“.
“Concerns that ECB monetary policy is starting to rein in the industrial sector more and more could put pressure on the Euro again at the end. Another reason why downside risk in EUR/USD is likely to dominate after all.”
“And there is another factor that could affect the Euro: the increase in tensions between the US and Russia after the Russian announcement of the suspension of the nuclear disarmament treaty (START). Probably you have to keep at least one eye on the evolution of this matter.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
