Home Forex Analysis And Forecasts Setups For EUR/USD, USD/JPY, USD/CHF, AUD/USD, NZD/USD - Barclays

Setups For EUR/USD, USD/JPY, USD/CHF, AUD/USD, NZD/USD – Barclays

Over the past few years, the euro area economy has experienced a deep and severe inflation decline.

However, the worst phase of the disinflationary period may be over as underlying prices seem to have stabilized last year, albeit around very low levels.

While the first step in any recovery is for consumer prices to stop shrinking, what shape the rebound will take is not yet certain.

Given most of the forces driving the rebound are set to soften in H1, we expect inflation to turn negative again before technical factors push it back up by yearend, leading to an unsatisfactory W-shaped recovery (Figure 1).

eurozone inflation

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