Region: Europe

Rates regime strengthens as debasement trade fades. EUR/USD’s decline stalls at 1.1350. Sterling’s problem is the dollar.

Dollar strength beyond hawkishness. Divergence depressing the euro. Sterling also at the mercy of the dollar.

A stronger US dollar runs into harder questions. EUR/USD pushes through 1.14. Risk-off hurts sterling.

Sterling firms as Starmer steps down. Hawkish Fed bodes well for dollar. Euro still a laggard after dovish Lagarde.

Fed hawkishness overrides geopolitics. Fed dominance pressures EUR/USD. Sterling downside may be cushioned if the transition is orderly.

USD jumps to one-year highs. GBP weaker after BoE. JPY weaker as greenback extends post-Fed surge in Asia.