Despite closing the week on a positive note, the tone has been generally softer in the Euro, with market participants fading the recent breakout. As of now, it is really about gearing up for the next week’s Federal Reserve meeting and as shown in the table below, markets are expecting an uber-hawkish Fed. However, what has been fascinating has been the US Dollar’s tame reaction to the sizeable repricing in the last two weeks, with many going from two to four rate hikes this year, with the addition of quantitative tightening by Q3. Now, it has been mentioned at length, that the greenback’s muted response has largely ... (full story)