EURO Strength on ECB Rate Hike Bets The EURO is set to potentially strengthen as investors start pricing in four interest rate hikes by the European Central Bank over the next 9 months.
Friday's Inflation data will be closely watched by the markets, as any beat above forecasts will put pressure on the European central bank to react.
If ECB policy makers start coming out and hinting Rate Hikes are coming, expect the EURO to strengthen.
EUR/JPY would be the most optimal trade on the divergence of monetary policy.
