The euro is still weak against the US dollar after tumbling on Thursday for the first time since last April. This follows strong US jobs data last week which turned investors to the US dollar. Additionally, investors digested dovish signals from ECB policymakers, despite the body’s hawkish stance.
In its last meeting, the European Central Bank hiked interest rates by 50 bps, in line with market expectations, pushing borrowing costs to the highest levels since late 2008. It also flagged one more increase of the same magnitude in March, reaffirming its commitment to tame high inflation.
