A tale of two hikes
The European Central Bank will be voting on interest rates on Thursday. While the ECB is set to raise interest rates by 25 basis points similar to the Fed, it remains a different ball-game. The ECB is seemingly attempting to gradually ease inflation with a tightening pattern set to continue unfolding till 2024. Also, the ECB’s head of supervision, Andrea Enria, stated that the central bank will begin to request feedback from banking institutions regarding their liquidity level in order to monitor the risk potential for inherent shocks to the banking industry as interest rates are raised. In the context of that interview, Enria also indicated that persistent inflation and higher interest rates are here to stay as the influence of the war in Ukraine continues to affect the market. Today, PMI data is due for France, Germany and the Eurozone.?The fibre is currently trading at 1.1126
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The FOMC will be deciding on interest rates on Wednesday and the Fed is expected to raise interest rates by 25 basis points following a pause in June, especially since data revealed that yearly inflation dropped to 3% earlier this month, close to the Fed’s target.?US PMI and the Chicago Fed national activity index are due in the course of the day.?The 3- and 6-month bill as well as 2-year note auctions will also be taking place today. The greenback was trading at 101.05 compared to peers at the time of writing.