The Euro did not appreciate after the ECB decision. However, the Commerzbank economists expect to see higher EUR/USD levels.
Why didn’t the Euro appreciate after the ECB decision?
“The market is clearly more concerned that the ECB is not sufficiently sensitive to the risks that a rapid rate hike could entail after years of zero and negative interest rates, which make a hard landing of the financial system more likely. and from the real economy, than about the immediate benefits of taking a position in EUR starting today.”
“This concern is not likely to be overcome quickly. However, with each day that passes without a repeat of the market distortions of the past few days, these concerns are likely to ease somewhat. Consequently, it is unlikely that the euro to return to its former strength soon, but rather will slowly appreciate again.”
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.
