EUR/USD: Some upside potential over the next two or three quarters – Commerzbank EURUSD ECB Fed InterestRate Banks
Because the ECB, unlike the Fed, should not cut its key rates, there is still some upside potential for EUR/USD over the next two or three quarters.
As long as inflation in the Euro area is falling, the ECB with its rates on hold appears to be a more credible inflation fighter, from which EUR/USD will probably benefit. However, this perception will be reversed, if Eurozone inflation starts to rise again in the middle of next year. EUR/USD will then tend to weaken again.Information on these pages contains forward-looking statements that involve risks and uncertainties.
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