Despite what many central banks are trying to insist, it’s starting to seem less and less likely that the current inflation rates are just transitionary, and the more urgent it’s becoming that this needs to be dealt it. The most common method for tackling inflation is increasing interest rates.
Keeping this in mind, the EUR/USD is definitely a currency pair to have on the watchlist right now. Between the ECB and U.S. Feds, it is going to be very interesting to see who gives way first and begin to raise rates, as this will naturally lead to higher demand for holding the respective currency.Take a look at the following link to understand what our analyst Joe Perry had to say trading this pair: