Over the past few days, the euro was able to stand up well against a number of currencies. But in the view of economists at Commerzbank, the recent EUR move seems reasonably fragile.

ECB seems to be able to convince the market, for now

“The recently hawkish comments on the part of European Central Bank (ECB) members seem to have had an effect. However, that increases the risk of EUR correcting to the downside if the ECB were to disappoint at its meeting next week.”

“Since expectations regarding the scope of the rate step have gone a long way, I find it difficult to imagine that the ECB can fulfil or even exceed these expectations, thus providing further support to EUR.”

“At the end of next week, at the latest, there is the risk of downside corrections.”