fromLondon Business News | Londonlovesbusiness.com
2 months agoEuro benefits from Fed rate cut expectations, but risks remain - London Business News | Londonlovesbusiness.com
Monetary policy remains the central variable. While markets expect the Fed to cut interest rates if U.S. economic data show sufficient cooling, the European Central Bank (ECB) is inclined to keep its deposit rate steady at 2%. This divergence allows the U.S.-Eurozone real yield spread to narrow, thereby providing short-term support for the euro.