Thomson Financial News - The ECB is unlikely to lower rates as it says inflation is its top priority. And it is obvious the bank wants to increase rates. So in the short-term, the euro tends to be bought while the dollar is seen to stay weak as the Fed is unlikely to increase rates. But in the mid- to the long-term view, once the economy recovers to some extent, the U.S. will also need to increase rates as there are inflation risks. Since the U.S. has been aggressively lowering rates thus far, once signs for a rate hike emerge, the dollar may sharply rebound.
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