On June 27, youna Park-Heger, a foreign exchange analyst at Commerzbank, said in a note that the euro rose on Tuesday, despite signs of economic weakness in the region, but Friday’s euro zone inflation data may show sustained Strong inflation, which should support the euro this week.
She said it was not the economy but developments in inflation that were decisive for the ECB’s monetary policy decisions. There are concerns that core inflation will remain elevated.
Eurozone PMI figures were also weak on Friday, ahead of weak IFO data from Germany on Monday.
Weaker growth than the ECB forecast could cast doubt on a rate hike in September, but it was “premature” to bet on a pause, Park-Heger said.