EUR/USD: current strength might not be totally sustainable – Commerzbank

The Euro is benefitting from the general USD weakness. However, economists at Commerzbank expect weaker Eurozone data, which would trigger renewed weakness in the shared currency.

Negative Eurozone growth as early as Q1

“Even if economists expect negative growth as early as the current quarter, the data publications do not put the market into that kind of mood. If the Eurozone data then comes in well above what economists had expected their warnings of a recession have even less effect.”

“We expect negative Eurozone growth as early as Q1.”

“In the near future, the data is likely to be much less positive than is currently the case. That is why I hesitate to consider the current EUR strength totally sustainable.”