Divergence in Fed and ECB Policy to Lift EUR/USD

www.investing.com/analysis/divergence-in-fed-and-ecb-policy-to-lift-eurusd-200636673

By Fawad Razaqzada | Mar 28, 2023 06:57AM ET

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EUR/USD

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Markets have been more stable so far this week, as investors’ assessment of the risks to European lenders have improved. This has supported the European stock markets and the single currency.

Assuming the calm in Europe continues, then investors’ focus will return to monetary policy. The divergence in monetary policy between the Fed (becoming dovish) and the ECB (remaining hawkish) points to appreciation in the EUR/USD exchange rate.

I will explain price action and levels to watch on the EUR/USD for tactical trade ideas in this quick video.

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Central Banks

Interest Rates

Next Meeting

FED

5.50%

Dec 13, 2023

ECB

4.50%

Dec 14, 2023

BOE

5.25%

Dec 14, 2023

SNB

1.75%

Dec 14, 2023

RBA

4.35%

Dec 05, 2023

BOC

5.00%

Dec 06, 2023

RBNZ

5.50%

Feb 28, 2024

BOJ

-0.10%

Dec 19, 2023

CBR

15.00%

Dec 15, 2023

RBI

6.50%

Dec 08, 2023

PBOC

3.45%

BCB

12.25%

Dec 13, 2023

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Divergence in Fed and ECB Policy to Lift EUR/USD

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