The EUR/USD pair is trading around 1.09. In the opinion of Ulrich Leuchtmann, Head of Currency and Commodities Research at commerzbankstill it is too early to be skeptical about the euro.
ECB comments seem on point
“As long as the ECB gives the impression that it is fighting inflation and as long as the market can assume that these efforts could be successful, the euro will not suffer. In that case, a positive case could even be made for the euro.”
“The forex market doesn’t seem to care as much if we actually see only 25 basis points in March as if the ECB is already committing to it. Because the latter would point to reduced sensitivity. That would be detrimental to the euro. The objective of the comments of the ECB is probably to dispel this impression. And they seem right to me”.
“At the moment, the market disappointment, which we hope to see at some point, is still a long, long way away. And so it’s still too early to be skeptical of the euro.”
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.
