Commerzbank says the ECB would need to signal tightening that exceeds market expectations to trigger a sizable euro rebound. Markets currently price just under three hikes this year, making a large euro rally challenging. The ECB could hike next Thursday and may hint at a second move, but a materially stronger signal would require fresh forecasts showing a notable rise in inf risks — which Commerzbank views as unlikely. An end to the Iran war would offer a larger upside to the euro even if the E

2026-06-05

Commerzbank says the ECB would need to signal tightening that exceeds market expectations to trigger a sizable euro rebound. Markets currently price just under three hikes this year, making a large euro rally challenging. The ECB could hike next Thursday and may hint at a second move, but a materially stronger signal would require fresh forecasts showing a notable rise in inf risks — which Commerzbank views as unlikely. An end to the Iran war would offer a larger upside to the euro even if the ECB continues to tighten.