Central banks take divergent paths on interest rates.

Last week, the world's biggest central banks took very different approaches to monetary policy, with the European Central Bank hiking rates and worsening inflation outlook, the Federal Reserve pausing rate hikes, China's central bank lowering its key medium-term lending rates to stimulate the economy, and Japan leaving its ultra-loose policy unchanged. This divergence shows that the global economy is no longer synchronized but rather a collection of very different cycles. The euro rose to a 15-year high against the Japanese yen and broke above the $1.09 threshold as investors digested the ECB's hawkish tone.