Interest Rate Expectations and Their Impact on Q1 2026 FX Trends 🌍📈
Markets are increasingly pricing in further Fed rate cuts in early 2026 — after an expected December move that could bring policy rates closer to 3.00–3.25%. By contrast, the ECB looks set to keep rates stable near 2.00% as euro-area inflation eases.
💱 What could this mean for FX?
• Pressure on the US dollar may persist
• EUR/USD has scope to push higher if expectations hold
• Some emerging currencies may benefit from a softer dollar
⚡ Q1 could bring stronger volatility and new directional trends as traders reposition around policy shifts.
Ready to trade these moves? 🚀
https://my.nordfx.com/en/regis...
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