For traders, it’s a market defined by divergence, between a cautious Federal Reserve and a cornered European Central Bank, between resilient rhetoric and weakening fundamentals. The core conflict facing the Euro is that the ECB remains trapped by stubborn price pressures while the region’s economic fundamentals continue to erode. The tension is amplified by policy divergence, with the Fed turning dovish amid concerns about the labor market, while the ECB remains reluctant to ease. Internal risks with the ...