Analysis: Market reflects expectation of interest rate hikes in the UK and Eurozone.

In a report, Daniela Hathorn of Capital.com stated that the surge in energy prices has reignited inflation concerns, leading to the market beginning to reflect the risk of rate hikes by the Bank of England and the Eurozone central banks in the coming months. The market has also downgraded expectations of a rate cut by the Federal Reserve. Hathorn mentioned that the impact of energy prices has made the central banks' role more complex, adding inflation risks at a time when economic growth appears to be slowing down.