EUR – The euro dropped back below parity against the dollar on Thursday after the European Central Bank raised rates by 75 basis points, as expected, but hinted at a slower pace of future increases.
Commenting after the announcement, Vanda Research noted: “The ECB is living on the edge of a dovish pivot. It’s clear that this is a central bank that wants to front load rate hikes to control inflation. But they are also wary that they are not in control of a lot external growth and market factors that can act as a circuit breaker to the hiking cycle.”
Commenting after the announcement, Vanda Research noted: “The ECB is living on the edge of a dovish pivot. It’s clear that this is a central bank that wants to front load rate hikes to control inflation. But they are also wary that they are not in control of a lot external growth and market factors that can act as a circuit breaker to the hiking cycle.”