As discussions about stagflation heat up, traders

On August 31st, Aihuicha News: After a series of poor economic data in the eurozone and pessimistic comments on the economic outlook by European Central Bank Executive Director Schnabel, even if the CPI of Spain and France accelerates again in August, traders have begun to bet that the European Central Bank will suspend interest rate hikes next month and gradually become bearish towards the euro. Analysts have lowered their median expectations for the euro against the dollar for the first time in six months, with investment banks including Bank of America and JPMorgan Chase predicting that the euro will fall to 1.05 against the dollar, which was the level during the banking crisis in March. The Bank of France Asset Management Company believes that the currency pair may fall to 1.02. Jordan Rochester, a foreign exchange strategist at Nomura, said that the slowdown in the European economy has become the new market tone. Jane Foley, head of foreign exchange strategy at Rabobank Netherlands, said that in this situation, the market should question whether it is overly long on the euro.