US Labor Data May Curb Euro Gains Against Dollar

Commerzbank's Michael Pfister notes that reduced expectations for Federal Reserve (Fed) tightening have contributed to the EUR/USD climb, but questions its justification.

Pfister stresses that Kevin Warsh's lack of forward guidance does not preclude rate hikes and that stronger US labor data could shift expectations back toward tighter policy.

Commerzbank has cut its EUR/USD forecast by two cents across its horizon as perceived dollar hike risks rise.