The EUR/USD currency pair was seen strengthening on Thursday, as markets continued to react to the U.S. Federal Reserve’s 25-basis-point rate hike. The greenback was lower across the board, slipping against several G7 currencies, including the British pound.
EUR/USD
On Thursday, the world’s most traded currency pair rose for a sixth consecutive session, as traders processed yesterday’s rate hike.
The Federal Reserve decided to increase rates by 0.25%, despite recent doubts in the banking sector.
Following the announcement, Fed Chair Jerome Powell declared that “FOMC participants don’t see rate cuts this year, it is not our baseline expectations.”
Overall, it appears that reducing inflation remains the priority for the Fed, with the U.S. Treasury exploring ways to guarantee customer deposits should any further banks face liquidity issues.
EUR/USD rose to an intraday peak of $1.0929 in today’s session, which is its highest rate since February 3.
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