Rates Spark: Inflation Data Next Test For Bullish Euro Rates

ING Economic and Financial Analysis5.19K FollowersFollow5ShareSavePlay(4min)CommentsSummaryEurozone inflation has been stable, but downside surprises could easily trigger the pricing of more ECB cuts.10Y swap rates can face upward pressure if we continue to see inflation data come in above target.Meanwhile, we think the recent downward pressure on euro rates has gone too far - but risk sentiment fragile, they can remain attractive. J Studios/DigitalVision via Getty Images By Michiel Tukker, Senior European Rates Strategist Eurozone inflation stable, but also source of risk Inflation surprises remain a risk to our rates view, both in terms of upside and downside risks. Markets are positioned forThis article was written byING Economic and Financial Analysis5.19K FollowersFollowFrom Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.