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What is more important for EUR/USD: the difference in interest rates between the Fed and the ECB or global risk appetite? In fact, these processes are interconnected. Both the large-scale demand for stocks and the expectations of a decrease in borrowing costs in Europe and the USA were provoked by the Fed's dovish pivot in December. If it weren't for Jerome Powell's discussions on monetary expansion, the euro would hardly have jumped so high. However, as is well known, those
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