EUR/USD pushed lower again on Thursday. Economists at Commerzbank expect the shared currency to remain under downside pressure as the European Central Bank (ECB) is lagging behind the Federal Reserve but also the Bank of England (BoE), economists at Commerzbank report.

The headwinds for the eurozone economy will increase into the winter

“Discussions about whether the ECB will raise its key rate by 25 or 50 basis points in September only underscore how clearly the ECB is lagging behind the Fed but also the BoE. And this is becoming more of a problem for the euro as the growth outlook becomes increasingly gloomy.”

“The headwinds for the eurozone economy will increase into the winter. In particular, a continuing threat of gas shortages, and high energy prices are weighing on the growth outlook. This is weighing on demand and is also likely to dampen price pressure.”

“The ECB is in danger of falling further behind other central banks. For the time being, this does not bode well for the euro.”