ECB has its reputation to think about ...
![](https://cdn-images.postach.io/e4d478e1-5ef5-4078-9a0f-d7c668d44800/db7b29e9-8b8a-7262-fc97-fc88d4f581e9/0ef3f47a-38f2-90ac-8f18-2321893d14bc.png)
And take a look at the chart at the bottom - yes ... hiking weakened the currency (which means the hike was irrelevant in CPI terms so WTF was the point of that!) ...
Note it was weaker than the yuan which has been in freefall as the Chinese economy slows quickly ... personally I think fx markets tend to be somewhat smarter than economists at calling turning points and they are certainly more adept than central banks ...to me this feels like a clear signal ... one tick of tightening too far ...
![](https://cdn-images.postach.io/e4d478e1-5ef5-4078-9a0f-d7c668d44800/db7b29e9-8b8a-7262-fc97-fc88d4f581e9/7bf7ae5c-1eaa-a4f9-61a7-fded352830d9.png)