ING Bank: If long-term yields rise further, the euro may depreciate

Golden Ten Data reported on May 18 that ING analyst Chris Turner stated in a report that if long-term government bond yields in the eurozone continue to rise, the euro may come under pressure. He said, "High energy prices and the current increase in long-term interest rates are obstacles to economic growth." He pointed out that the European Central Bank's disregard of the risks of a temporary inflation spike could negatively impact long-term bonds. Therefore, the European Central Bank needs to continue signaling the possibility of interest rate hikes. Any further sell-off in long-term bonds would push the euro against the dollar down to 1.1570.