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More Proactive ECB Could Limit Euro's Losses Versus Dollar -- Market Talk

Dow Jones03-20 22:19

1418 GMT - A more proactive policy by the European Central Bank in the face of inflation risks should limit the euro's falls against the dollar, HSBC's Nick Andrews says in a note. Thursday's message from the ECB that it could raise interest rates if energy prices stay high caused money markets to price an increased probability of rate hikes. Markets fully price 25 basis-point rate increases in June and July, and a 67% chance of a hike in April, LSEG data show. "A more proactive policy as priced by markets should help buffer euro-dollar from deeper falls," Andrews says. However, the eurozone is more vulnerable than the U.S. to prolonged higher energy prices, he says. The euro falls 0.4% to $1.1538. (jessica.fleetham@wsj.com)

 

(END) Dow Jones Newswires

March 20, 2026 10:19 ET (14:19 GMT)

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