The ECB's Decision

Christine Lagarde's interest rate decisions has stymied the recent Euro rally, deposit rates stay at 2% while economy remains resilient amidst global developments in central bank policies where de-dollarisation changes the dynamics between capital flows and American dollar hegemony. Stronger euro data may suggest that inflation would cool down while a 0.625% cut is priced in the year-end. Economic developments in the region would likely change the movement of capital flows from Euro, Dollar to EM currencies to hedge against developments in the European markets.