Deutsche Bank: It is unclear whether the Euro will benefit from potential consecutive rate hikes.

Thu Lan Nguyen of Deutsche Bank stated in a report that the Euro may not necessarily benefit if the European Central Bank raises interest rates by 25 basis points on Thursday and again in July. She said that there is no guarantee that the market will view consecutive rate hikes as appropriate. Some market participants have previously warned that there is a risk of policy error in the recent rate hike, and they believe that a more appropriate approach would be to wait and see if inflationary pressures are persistent. "Premature and aggressive tightening policies may unnecessarily pressure the real economy and force the European Central Bank to later cut rates more significantly." The Euro fell by 0.2% to 1.1560 US dollars.