The euro strengthens against the U.S. dollar as rumors have it that the ECB is mulling a 75 bps rate hike during its monetary meeting on 27th October 2022. Currently, EURUSD trades near the 0.9959 USD price tag. As a result of the upcoming ECB decision, we expect it to strengthen temporarily. Although at the moment, we have doubts the rate hike will have a lasting effect on the euro, especially since the FED is set to go through with its own rate hike next week. In addition to that, we expect the rate hike to weigh on the German economy and drag it lower over time.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.