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| Commerzbank Economists Predict US Dollar to Benefit More Than Euro from Easing Financial Market Stress |
According to economists at Commerzbank, the US Dollar is likely to benefit more than the Euro from the easing of global financial market stress. As financial market stress eases, FX traders are expected to assume that the tightening of credit conditions will be only moderate, resulting in a need to price in further rate hikes from the Federal Reserve.
The Commerzbank economists noted that the Dollar might benefit more from the easing of the stress than the Euro going forward. As a result, they expect the Dollar to outperform the Euro in the coming weeks.
This news comes amid heightened volatility in the financial markets due to concerns over inflation and rising interest rates. The Federal Reserve has been closely monitoring the situation and has indicated that it may raise interest rates sooner than expected to combat inflationary pressures.
Investors will be keeping a close eye on the US Dollar in the coming weeks as the situation evolves. It remains to be seen whether the Dollar will continue to benefit from the easing of financial market stress, or whether other factors will come into play that may impact its performance.
