Euro Might not Benefit if U.S.-Iran Agree Lasting Peace Deal

Dow Jones
Jul 29

1429 GMT - The stronger correlation between oil prices and inflation expectations for the eurozone compared to the U.S. casts doubts on whether the euro would benefit from lasting U.S.-Iran peace deal, Commerzbank's Michael Pfister says. "While Federal Reserve [interest-rate] expectations have recently decoupled from the oil price, ECB expectations remain tied to inflation risks." Earlier this month when oil prices rose again, one-year euro-area inflation expectations climbed but U.S. expectations dropped. Fed rate rise expectations look ambitious and it's unclear whether this will change in the event oil prices fall, he says. Until that changes, the euro could struggle to rise versus the dollar, he says. The euro rises 0.1% to $1.1393.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10