Unclear if Euro Would Benefit From Potential Back-to-Back Rate Increases -- Market Talk

Dow Jones06-12

0738 GMT - The euro wouldn't necessarily benefit if the European Central Bank raises interest rates again in July after Thursday's 25-basis-point increase, Commerzbank's Thu Lan Nguyen says in a note. It isn't guaranteed that the market would consider back-to-back rate increases appropriate, she says. Some market participants were already warning of a policy mistake with the latest hike, arguing it would be more appropriate to wait to see if the inflation shock proves persistent. "Premature and aggressive tightening could put unnecessary strain on the real economy and force the ECB to cut rates all the more sharply at a later stage." The euro falls 0.2% to $1.1560. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

June 12, 2026 03:38 ET (07:38 GMT)

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