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Commerzbank: The progress of the Iran war remains crucial for the euro’s outlook

Commerzbank: The progress of the Iran war remains crucial for the euro’s outlook

老虎证券老虎证券2026/05/22 14:25
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The market is currently reflecting strong expectations for a U.S. interest rate hike before the end of the year due to rising oil prices. However, concerns about economic growth have led the market to reduce its bets on a eurozone rate hike. Baur stated that if the market once again prices in Fed rate cuts, a rapid resolution of the conflict would support the euro. He said that if the conflict continues and it becomes more apparent that Europe is being more severely impacted economically than the U.S., the euro may decline. The euro fell 0.1% to $1.1607.
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