Money markets are fully pricing 3 rate hikes in 2026 by the ECB

The market's pricing in of three rate hikes by the ECB in 2026 suggests growing confidence in the central bank's ability to normalize monetary policy in response to inflation and economic recovery. This aligns with shifts in the rate path that could impact the Euro and influence fixed income markets. Traders should monitor how this perception alters risk sentiment across the Eurozone and the broader market landscape.