EUR/USD to struggle as ECB hesitates to make a clear commitment to combat inflation – Commerzbank

Will the prices continue to rise? The European Central Bank (ECB) has not made a clear commitment to combat inflation yet. Until then, the euro is set to remain under pressure, economists at Commerzbank report.

The Fed will take action against inflation in an aggressive and rapid manner

“The Fed has already made it very clear that it will not remain idle but will take action against inflation in an aggressive and rapid manner. The ECB has yet to make this commitment. If we do get it, the euro is likely to benefit. The sooner, the better for the euro.”

“Until the risk of an energy crisis and considerable economic effects as a result of the Ukraine war have not been banished, the ECB is likely to hesitate to make a clear commitment. And as a result, it will also be a while before the euro can appreciate on a sustainable basis.”