Traders increase bets on European Central Bank rate hike, with a 50% possibility of a rate hike in 2026.

With the soaring energy prices and rising inflation indicators, the currency market is increasing its bets on the European Central Bank raising interest rates, with an expected increase of 12.5 basis points this year. The swap market indicates that interest rates are expected to be raised by 12.5 basis points before the end of the year, compared to expectations for a 1 basis point rate cut on Monday and a 10 basis point rate cut last week.