Economics

Euro Trading Is All About the Energy Crisis, Not ECB Rate Hikes

The euro fell below dollar parity after the ECB rate decision
‘The ECB is fighting gravity in FX markets,’ says Danske Bank

WATCH: ECB’s rate hikes are not sufficient to support the euro, says Adarsh Sinha, co-head of Asia FX & rates strategy at BofA Securities.Source: Bloomberg

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By Naomi Tajitsu

September 9, 2022 at 4:00 AM UTC

This article is for subscribers only.

Not even a big interest-rate hike by the European Central Bank can help the euro these days.

The currency’s sharp selloff on Thursday in the wake of the ECB rate decision highlights how little monetary policy matters right now to traders, compared with the scale of economic destruction wrought by the war in Ukraine.