ECB Rate Hike and the Euro: Is EUR/USD Becoming a Policy-Divergence Trade?
An ECB rate hike can make EUR/USD a policy-divergence trade when the European Central Bank and the U.S. Federal Reserve move interest rates in different directions or at different speeds. This matters because currencies respond to expected returns, not only today’s rates. Traders now need to judge whether Europe’s policy path is becoming more supportive […]
