Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why the Euro Is Falling Despite Higher ECB Rates
Lucas and Luna explore the surprising weakness in the euro during mid-2026, even as the European Central Bank keeps rates elevated and Christine Lagarde hints at an early exit. They examine the role of French political uncertainty, diverging inflation trends between the US and Europe, and what the euro's decline means for global trade and Fed policy. With the euro down nearly 5 percent against the dollar this year, the discussion digs into the real drivers: political risk, energy dependence, and China's deflationary spillover. Lucas references the latest data on US core PCE at 2.6…
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