It’s been a positive week for the single currency, strengthening against all major rivals, especially the Norwegian krone and Japanese yen, and around 1% against sterling.
For next week, the betting appears to be that the European Central Bank will deliver a 50 basis point rate hike. Danske Bank predicts this will be with “a hawkish twist,” and that it expects the ECB to “present key principles of the end to reinvestments under the APP process (in which reinvestments will almost come to a full stop) and an open-ended wording for more rate hikes to come.” Danske added that this will be a “palatable” compromise to “both hawks and doves.”
EUR/USD past year
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