EUR at Risk of Further Decline if Inflation Data Misses and Lagarde Weakens Rate Hike Outlook

According to Monex Europe analysts, the euro faces risks of further depreciation if Wednesday's eurozone inflation data comes in below expectations and European Central Bank President Christine Lagarde signals reduced scope for further rate increases. The analysts noted that preliminary data from Germany, France, and Italy have disappointed, suggesting the upcoming inflation figures may also undershoot forecasts. Lagarde's remarks at the ECB forum in Portugal on Wednesday may confirm expectations that the central bank will pause after last month's rate hike.
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