How the ECB Rate Hike Is Splitting the Euro and the Dollar

On June 11, 2026, the European Central Bank hiked rates for the first time since 2023, responding to an Iran-driven energy surge. Lucas and Luna break down how this decision is reshaping the EUR/USD pair—now at 1.16—and what it means for currency markets. They explore the inflation differential between the US and Europe, the divergent paths of the Fed and ECB, and why the euro's strength may be short-lived. With the trade-weighted dollar index edging higher and US inflation at 4.2%, the episode examines whether the rate hike widens or narrows the dollar-euro gap. Specific data points include the ECB's decision, May CPI numbers, and the yen's slide to 160 per dollar. A focused look at central bank divergence in a fractured global economy. #ECB #RateHike #EuroDollar #EURUSD #FederalReserve #Inflation #EnergyPrices #MonetaryPolicy #CurrencyMarkets #FX #Economics #CentralBanks #GlobalEconomy #TradeWeightedDollar #Yen #FexingoBusiness #BusinessPodcast #CurrencyConversations Keep every episode free: buymeacoffee.com/fexingo