Euro May Weaken on Easing ECB Rate Hike Expectations, SMBC Nikko Says
The euro could weaken if expectations for further interest rate increases by the European Central Bank diminish, according to strategists at SMBC Nikko Securities. This view follows ECB Chief Economist Philip Lane's comments that rising energy prices might dampen eurozone demand, potentially reducing the need for further rate hikes.
SMBC Nikko Securities strategists said the euro may weaken if expectations for further European Central Bank rate increases ease, according to a note. ECB Chief Economist Philip Lane said Monday that the recent rise in energy prices may cool demand in the eurozone, which could limit the need for rate increases.