Slowly, the Euro looks more attractive. However, economists at Commerzbank urge caution against excessive EUR euphoria.  

Limited risk premium seems justified

“The recovery in EUR/USD since the beginning of November is likely to be mainly due to the USD correction. However, the EUR negative arguments are also getting increasingly less convincing. Yesterday’s Ifo index provided further evidence that the economic framework conditions are gradually improving.”

“However, we urge caution against excessive EUR euphoria as the risk of an energy crisis has not yet been overcome. As a result, a limited risk premium seems justified.”