Inflation data from Germany, Spain and Belgium will give a first glimpse of eurozone inflation data for September tomorrow. In the opinion of economists Commerzbankinflation could once again cause problems for the euro.
Inflation as a risk for the euro
“If the economy cools significantly in the coming weeks and if the ECB starts to conclude that this could increase inflation pressure to the point of requiring more cautious rate hikes, inflation could very soon become a problem for the euro again“.
“If the foreign exchange market does not share the ECB’s view, there is a risk of rising inflation, which the European Central Bank is not countering with an adequate tightening of monetary policy, which would put significant pressure on the single currency. “
Source: Fx Street
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