UEUR - Euro falls to 16-month low against the dollar amid policy divergence

Monetary policy has been front and center over the last few months amid questions about how economic trends coming out of the pandemic will influence the world's most important central banks. Chief among them is inflation concerns, though other figures like industrial production and retail sales have also been big talking points. Lockdowns are not helping, with Germany following Austria's lead in shuttering places where hospitals are overwhelmed as surging COVID cases spread across the continent. Bigger picture: Traders are betting that the ECB will stick to its loose monetary policy despite the Federal Reserve and Bank of England indicating that they are going to raise rates to counter inflation. The U.S. economy has also surprised on the upside this year, while recent European data has disappointed, such as Germany's latest industrial production and factory orders figures. "At a time when purchasing power is already being squeezed by higher energy

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Euro falls to 16-month low against the dollar amid policy divergence