# Euroflation: the EUR reflation trade and its market implications | articles | ING THINK

> ING analysis notes euro interest rates and inflation swaps have risen alongside USD counterparts, though the eurozone reflation trade rests on weak fundamentals. Harsher lockdowns, slower vaccine rollout and limited fiscal stimulus leave eurozone recovery distant. Rising global commodity prices are feeding into some inflation expectations.

- Date: 2021-02-09 · published 2021-02-09T12:00:00.000Z
- Category: macro · region Europe · magnitude low
- Page: https://feedsoft.ai/events/48857-euroflation-the-eur-reflation-trade-and-its-market-implications-articles-ing
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Higher inflation expectations and commodity prices can support raw material values, but the eurozone's weaker growth limits feed demand from Europe.

## Read by commodity

- EURUSD: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2024-08-30 | [FX Daily: US and eurozone inflation in focus \| articles \| ING THINK](https://feedsoft.ai/events/29011-fx-daily-us-and-eurozone-inflation-in-focus-articles-ing-think.md) | 0.0% | +0.7% |
| EURUSD | 2020-01-23 | [EUR & the ECB: The good, boring funding currency \| articles \| ING THINK](https://feedsoft.ai/events/55291-eur-and-the-ecb-the-good-boring-funding-currency-articles-ing-think.md) | -0.7% | -2.6% |
| EURUSD | 2019-12-12 | [EUR & ECB: The funding characteristic of the euro still intact \| articles \| ING THINK](https://feedsoft.ai/events/55781-eur-and-ecb-the-funding-characteristic-of-the-euro-still-intact-articles-ing.md) | +0.2% | +0.2% |
| EURUSD | 2022-10-31 | [EUR/USD: High inflation to dampen the risk of a sharper euro sell-off – MUFG: Analytics and Market news from 31 October 2022 14:35](https://feedsoft.ai/events/39366-eur-usd-high-inflation-to-dampen-the-risk-of-a-sharper-euro-sell-off-mufg.md) | -0.4% | +4.2% |
| EURUSD | 2021-01-28 | [FX: Challenging our bearish dollar forecast \| articles \| ING THINK](https://feedsoft.ai/events/49343-fx-challenging-our-bearish-dollar-forecast-articles-ing-think.md) | -0.6% | +1.1% |

## Sources

- think.ing.com: https://think.ing.com/articles/euroflation-the-eur-reflation-trade-and-its-market-implications/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.