Some European Central Bank (ECB) board members also used the symposium in Jackson Hole to convince the market of their efforts in fighting inflation. Eurozone inflation data on Wednesday could provide support to the euro, but in a limited way, economists at Commerzbank report.

The ECB too still has a lot of convincing to do

“The ECB talk is more or less irrelevant for the market. Here to action will be required to support the euro. I would even question whether a further 75 bps rate hike in September would be sufficient to convince the market in view of the fact that the ECB is likely to be seen as being well behind the curve.”

“The eurozone inflation data over the coming days is likely to illustrate how much convincing still needs to be done. If the euro was going to be able to appreciate significantly in reaction to surprisingly high data this would be a sign that the market expects a sufficiently strong reaction on the part of the central bankers after all. However, it is more likely that the data would provide only limited support for the euro.”