The future movement of EURUSD prices depends on the policy measu
Volatility is bubbling up in foreign exchange markets, as bets on how aggressively central banks will tighten monetary policy in the face of surging inflation boost the dollar and exacerbate swings in global currencies.
Fed funds futures, which reflect investors’ monetary policy expectations, on Wednesday had factored in a 100% chance that the Fed will raise rates by next June. Eurozone rate futures, meanwhile, have fully priced a 10 basis-point hike by December 2022.
Fed funds futures, which reflect investors’ monetary policy expectations, on Wednesday had factored in a 100% chance that the Fed will raise rates by next June. Eurozone rate futures, meanwhile, have fully priced a 10 basis-point hike by December 2022.
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