Global Macro: Diverging Policy Bearish for the Euro
NEW YORK ( TheStreet) -- The euro has tumbled in recent weeks as policy expectations have diverged in the U.S. and Europe.
The European Central Bank meets on Thursday to discuss monetary policy, with discussions revolving around weaker inflation.
Last week inflation readings for the European region came in well below the 2% target. This led many to speculate the ECB will be forced to take action in order to stimulate economic activity.
Although the central bank is unlikely to cut rates at Thursday's meeting, some form of action is expected in the future if inflation remains tepid.Meanwhile, in the United States, investors have begun to fear that the Federal Reserve has hawkish plans for the future. (FXE). The euro has come under heavy selling pressure as investors have preferred to own the dollar versus the euro due to diverging policy expectations. Follow @macroinsights This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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