ECB Rate Hike Expectations and EUR Dynamics: A Strategic FX Brief

Economists anticipate the ECB will hike its deposit rate by 25 basis points to 2.75% in December, according to a Reuters poll. This expectation underpins a cautiously constructive outlook for the EUR, particularly against less hawkish peers. The focus shifts to post-December guidance and relative policy divergence with the Fed and BoE, influencing EUR/USD and EUR/GBP. EUR/JPY remains challenged by BoJ's dovishness.