Daybreak Europe Show Open: ECB Hawks Rise

The video discusses potential changes in ECB policy rates, with Mr. Winstanley suggesting rates could turn positive this year. The Belgian Central Bank Governor, Pierre Onch, supports a rate hike by year-end. Despite potential challenges like Russian gas cutoffs, the ECB remains on a hawkish path. Recent comments from ECB members have influenced the euro's performance, with predictions of ending net asset purchases and possible rate hikes in the coming quarters. The euro-dollar exchange rate is also affected by these developments and the Fed's narrative.

What implications does a potential rate hike have for the economy?

What factors contribute to the 'King dollar' narrative mentioned in the text?