The economists of National Bank of Canada They discuss the prospects for the Euro.
ECB: Monetary policy tightening seems less likely
He Low growth and the drop in inflation could signal that the ECB is not going to tighten its monetary policy any further.. But real rates in the eurozone remain largely accommodative and a still decent labor market combined with high inflation should keep the tightening program on track.
The most likely scenario is that the Federal Reserve faces data that leads to further rate hikes. Therefore, the rapprochement of positions between both central banks has become less likely.
The growth prospects for both economies in the last months of the year are not positive and could lay the foundations for further weakness in the Euro.
Source: Fx Street
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