The EUR/USD currency pair is demonstrating resilience as it hovers near its recent highs. Currently, the EUR/USD quote stands at 1.0940.

The euro's positive performance can be attributed to the European Central Bank's confirmation of its hawkish stance on interest rates. While this outcome was largely anticipated, it still made a significant impact.

At the start of this week, there are no major macroeconomic data releases, and investors are closely monitoring news related to the US Federal Reserve System.

Less than a week has passed since the Fed's decision to maintain interest rates at 5.25% per annum, but discussions have already begun regarding the need for further rate hikes. Last Friday, two Fed officials, Christopher Waller and Thomas Barkin, emphasized the necessity of implementing a new phase of interest rate increases.

Their message was clear: "We should continue raising interest rates to bring inflation down to the target level of 2%. Despite a robust labor market, core inflation remains stagnant. Additional measures may be required to address this issue."

This statement carries significant weight and should be taken seriously by market participants.

As the week unfolds, traders will carefully analyze any further developments from central banks and keep a close eye on macroeconomic indicators to make informed trading decisions.

Stay tuned for more updates on the EUR/USD currency pair and other relevant market news.

Open Trading Account