Europe Rates Markets Radiate ECB Heat as FX Stays Cool: Analysis
December meeting disappointment still fresh in mind.
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It’s a study in contrast. Europe’s rates volatility mirrors the elevated levels that prevailed before European Central Bank’s December meeting when investors expected President Mario Draghi to aggressively ease the policy. But the euro is showing no such nerves, Bloomberg strategist Tanvir Sandhu writes.
This divergence potentially exposes currency markets to greater swings if Draghi manages to surprise. On the obverse side, a lukewarm ECB outcome could affect rates market more.