RBC's Cole: Negative Risk for Euro on ECB's Next Move

The transcript discusses the European Central Bank's (ECB) inflation forecast, which has been undershooting expectations. It explores potential policy changes under Mario Draghi, including modifications to quantitative easing (QE) parameters rather than further interest rate cuts. The discussion also covers the potential negative impact on the euro and how Federal Reserve (Fed) rate hikes could ease ECB's policy stance through exchange rate effects. The market's pricing of Fed hikes is also examined, with a focus on how these factors interplay in the broader economic context.

What is the general sentiment towards the current economic policy stance in Europe?

What does the speaker imply about market pricing in relation to the Fed hike?