- Eurozone inflation depends on EU retaliation to the US.
- Geopolitics since the starts of the year is bad news for the economy.
- There is downward pressure on inflation.
- Need to watch for China goods rerouting to Europe.
- ECB June projections may be a little bit worse.
- June ECB cut is needed.
Now that the US have made it clear that the 10% tariff rate is the floor, the ball is in EU’s court. Will they take a more hawkish stance?
This article was written by Giuseppe Dellamotta at www.forexlive.com.