Top ECB policymakers lay groundwork for June rate rise - Financial Times
Macro
Multiple ECB policymakers — including Schnabel and the Bank of France governor — are publicly laying groundwork for a June rate hike, signaling a hawkish pivot even if geopolitical risks (Iran) persist. This narrows the EUR rate path upward and sets up a EUR/USD re-rating as the Fed-ECB policy divergence gap closes faster than the market priced.
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↑ LONG+3% target-1% stop4-6 weeks, into June ECB meetingJun 5 '25
Long EUR/USD via FXE into June ECB meeting as coordinated hawkish signaling compresses Fed-ECB divergence trade and forces EUR shorts to cover.