Commerzbank: EUR/USD to Grind Higher as Dollar Strength Eases

Commerzbank strategist Michael Pfister contends that the recent EUR/USD slide is a function of dollar strength, not euro fragility. With the market pricing aggressive Fed tightening, the greenback has outperformed, but Pfister sees this dynamic fading.

As the dollar's support from Fed expectations begins to unwind, the euro should find its footing and grind higher against the dollar. The view implies a gradual appreciation rather than a sharp reversal, aligning with a slow grind upward for the pair.