Euro / Dollar Now Headed for 1.19 says Barclays

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The Euro will “grind higher” against the Dollar over coming weeks shows analysis from Barclays.

The call comes as analysts at the lender’s investment banking division reassess the Euro’s outlook in the wake of the European Central Bank’s February policy update, which ultimately prepared markets for interest rate hikes over coming months.

“The ECB President failed to rule out a 2022 rate hike, instead emphasising that at the March meeting the bank would be in a better position to make policy decisions,” says Marek Raczko, a strategist at Barclays.

The ECB’s entertainment of a 2022 rate hike boosted the Euro and Eurozone bond yields in early February, although the economist community is now debating whether a rate hike will be delivered in December or March.

Money market pricing is meanwhile showing investors to be buying into more than one hike in 2022 as the front-end of the euro curve is now pricing up to 50 basis points of…

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