Economics
It May Be Too Late Already for the Fed-ECB Divergence Trade
- Reluctant hawks vs reluctant doves makes for narrower divide
- Strategists at UBS, Deutsche Bank questioning the split theme
Examining the Unknowns of a Federal Reserve Rate Hike
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The days of the divergence trade may be numbered.
With Janet Yellen and her Federal Reserve cohorts set to push the lift-off button in two days, financial markets may have already overshot in betting on a split in U.S. and euro-area monetary policies even as the European Central Bank extends stimulus, according to Deutsche Bank AG and UBS Group AG.