EURUSD consolidating in 1.03000-1.08000 range
Although the ECB's decision was widely expected, the possibility of a sharp rate hike from September has weighed on market sentiment as the eurozone economy struggles to cope with slowing growth and soaring inflation.
For months, markets have been focused on the pace at which central banks are curbing inflation. Investors now expect the Fed to raise rates by 50 basis points next week, especially if Friday's U.S. CPI data confirms rising inflation figures.
But central bank rate hikes also hint at trouble and leave investors in the lurch, as they could trigger an economic slowdown. The ECB said inflation will remain "undesirably high" for some time.
For months, markets have been focused on the pace at which central banks are curbing inflation. Investors now expect the Fed to raise rates by 50 basis points next week, especially if Friday's U.S. CPI data confirms rising inflation figures.
But central bank rate hikes also hint at trouble and leave investors in the lurch, as they could trigger an economic slowdown. The ECB said inflation will remain "undesirably high" for some time.
