Euro Recovery Likely Faces Long Wait, May Need Years to Return to 1.18 Against Dollar: Commerzbank

EURUSD0.06%

According to Commerzbank analyst Michael Pfister, reported by Jin10 on June 29, the euro likely needs considerable time to recover meaningfully against the dollar. With eurozone inflation possibly peaking in May, markets are unlikely to bet on further ECB rate hikes, and no decisive catalyst currently supports dollar weakness.

Michael Pfister noted that June inflation data, expected to show modest relief from falling energy prices, is unlikely to change this dynamic. The analyst expects the EUR/USD exchange rate to take considerable time to return to its pre-crisis level of 1.18.

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