Focus on 2019 rate hike ahead of key ECB meeting

The euro could strengthen should ECB president Mario Draghi stick tomorrow to indications that monetary policy could be tightened next year, just as the US central bank’s interest-rate path is thrown into doubt.

Against the dollar, the euro is benefiting from broad dollar weakness as traders question whether the US Federal Reserve will continue to raise rates next year. The euro could rally if Mr Draghi signals tomorrow that at least one increase in 2019 is still on the ECB’s radar. Still, money markets suggest that the first hike in the deposit rate since 2011 will not happen next year.