The euro could appreciate in the course of the trading day. In the opinion of Commerzbank economists, the recovery is not sustainable.
Pigeons could be more cautious again
“Inflation, and particularly core inflation, is likely to remain elevated, requiring further monetary policy tightening. Uncertainty over whether the ECB will be willing to do so will likely pressure the euro in the coming weeks.” .
“If the ECB has to retract its comparatively optimistic economic projections as signs of a recession increase, the ECB’s doves could once again sound more cautious.”
“The EUR/USD rally seen in recent days is unlikely to be sustainable. We see the risk that the market will be disappointed in its expectations about the ECB and that this will be reflected in the fall in the levels of the euro.”
Source: Fx Street
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