Central banks are in the spotlight. Economists at Commerzbank analyze how their fight against inflation could impact the exchange rates.
The market has accepted that the rate hike cycle will come to an end for now, despite the fact that inflation rates are still well above target levels in some cases. A more notable reaction of the exchange rates should only be expected once the current outlook changes, that means if inflation does not ease as expected or if the economy cools much more quickly than expected.
Only if the central banks have to react to a change in the current status quo will it become foreseeable which central bank is pursuing a properly restrictive course and which one is also keeping an eye on other factors apart from price stability – usually to the detriment of its own currency. The currencies of those central banks that are continuing the fight against inflation in a particularly credible manner are likely to benefit on a long-term basis too.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.