Why ECB Rate Hike Is Strengthening the Euro in 2026

The ECB just hiked rates for the first time since 2023, and the euro is rallying. In this episode, Lucas and Luna break down why a rate hike tied to an energy shock is actually boosting the currency — and what that means for Eurozone exporters and inflation. They look at the mechanics: how higher rates attract capital flows, why the trade-weighted dollar index at 120.1 matters, and whether this is a durable trend or a short-term blip. With the euro at $1.15 and core inflation still hot, they explore the tension between fighting inflation and protecting competitiveness. A focused, data-driven look at one of the week's biggest macro stories. #ECB #RateHike #Euro #CurrencyMarkets #Eurozone #Inflation #CentralBanking #IranConflict #EnergyShock #DollarIndex #Forex #Exporters #MonetaryPolicy #Economics #FexingoBusiness #BusinessPodcast #EuropeanEconomy #Macro Keep every episode free: buymeacoffee.com/fexingo