The ECB's path: what's your read after the September hike?
The ECB raised its deposit rate to 2.50% on 10 September (report), with euro-area growth picking up (GDP report).
Discuss:
- how you're weighing growth against inflation in the ECB's path
- which euro pairs express your view best
- what would change your mind about the euro
Background: how interest rate decisions move currencies.
Background: How interest rate decisions move currencies
Central bank decisions are the biggest scheduled events in forex. Why rates matter, why a hike can weaken a currency, and what to read beyond the decision.
Does a rate hike always strengthen a currency?
No. If the hike was fully expected, it is already in the price. The currency can even weaken if the central bank signals that it won't raise rates further.
What does hawkish mean?
Leaning towards higher interest rates to control inflation. A hawkish surprise usually supports the currency.
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