The Euro (EUR) has been affected by recent dovish statements from policymakers at the European Central Bank. The economists of Commerzbank They analyze how the ECB's decisions could affect the common currency.
The ECB would jeopardize the success of previous monetary adjustments if it cut rates prematurely
The ECB would jeopardize the success of previous monetary tightening measures by lowering rates prematurely, because in retrospect it would be seen more as a tactic than a reflection of a fundamental stance.
That is why the Euro has been so affected by the recent dovish statements by ECB officials. And also for that has great recovery potential if the ECB applies fewer rate cuts than the market expects.
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.
