A new report states, "The European Central Bank (ECB) today pushed back the suggestion of an immediate interest rate hike. Trade tensions and fears of a global recession have put markets in a state of flux with market participants increasingly hopeful for additional monetary support. However, in the case of the US, recent economic data suggests that GDP growth will remain unchanged at current market expectations. US inflation is expected to also rise slightly in the months ahead due to increasing US employment, evidenced by a recent increase in non-farm payrolls. Labour market data has also shown a decline in the number of unemployed". Assume US 10-year bond yields are currently at 1.50%. The 10-year interest rate in the European Union (German bonds) remains at 0.50% percent. The euro is currently trading at 1 euro = 1.1800US$. Based on economic theory, explain the impact of higher US rates on the forward price for the EUR-USD exchange rate Where do you think the EUR-USD exchange rate will be trading in 1 years time ie July 2022? Explain your