Euro to come under pressure if inflation not ease back to target lower rate levels by summer – Commerzbank

Economists at Commerzbank note that the Euro could come under downside pressure in case inflation does not fall to target the lower rate levels in the Eurozone by the summer.

Euro is well served with the ECB ending its rate hikes by summer

“Yes, for the time being the Euro is well served with the ECB ending its rate hikes by the summer, above all as we expect rate cuts from the Fed due to the cooling of the economy.”

“However, if inflation does then not ease back to target the lower rate levels in the Eurozone are likely to seem that much more inappropriate to the FX market, with the Euro coming under pressure.”