Live Updates > Live Update Details
2026-05-22 23:04:38
[Commercial Bank: Iran War Progress Remains Key to Euro Outlook] Commerzbank analyst Volkmar Baur stated that recent shifts in US and Eurozone interest rate expectations highlight the importance of the progress of the Iran war to the euro's exchange rate against the dollar. The market currently reflects strong expectations of a US rate hike before the end of the year due to rising oil prices, but has reduced bets on a Eurozone rate hike due to concerns about economic growth. Baur said a swift resolution to the conflict would support the euro as the market may again reflect expectations of a Federal Reserve rate cut. He added that if the conflict continues, the euro could fall as the economic impact on Europe becomes more pronounced than on the US. The euro fell 0.1% to $1.1607.
