Antje Praefcke, FX Analyst at Commerzbank, analyzes EUR/USD outlook.

Headwinds continue

“I fear that short-term the Euro is unlikely to manage a sustainable recovery and that it might have to put up with exchange rates around 1.07 in EUR/USD.”

“I would not be at all surprised if the market had adjusted its expectations for the CPI numbers a little. But nonetheless: if today’s inflation data were to surprise on the downside it is likely to adjust its expectations further. And as this risk does exist in my view, the Euro is likely to face continued headwinds.”

See – Eurozone HICP Preview: Forecasts from four major banks, sharp drop in inflation