🇪🇺❗️ Euro Financial Conditions Tightened to Lowest Since May 2020

**As seen in Macro Walk report 08/20/2022, subscribe at cablefxm.co.uk/reports

• EU financial conditions index continued to drop last week, the gauge fell 26.9 basis points. Meanwhile, the U.S. metric was close to neutral earlier in the month. The divergence is quite impressive as the ECB has only tightened 50bps, and it is priced to lift rates a little over 1.5% next year. Fed's terminal rate is closer to 4%, however, we have seen U.S./EU financial conditions move inversely over the last couple of weeks