Commerzbank analyst Antje Praefcke says in a report that if the ECB holds rates and signals caution on further tightening, the euro could weaken further. Given France’s fiscal strain, the ECB may avoid a strong tightening signal; "markets still see scope for one more ECB hike by mid‑next year and possibly two by end‑2027." Praefcke adds that a cautious ECB and downward repricing of rate expectations could push EUR/USD toward $1.10.

2026-10-29

Commerzbank analyst Antje Praefcke says in a report that if the ECB holds rates and signals caution on further tightening, the euro could weaken further. Given France’s fiscal strain, the ECB may avoid a strong tightening signal; "markets still see scope for one more ECB hike by mid‑next year and possibly two by end‑2027." Praefcke adds that a cautious ECB and downward repricing of rate expectations could push EUR/USD toward $1.10.