EUR/USD steadily drops amidst rate hike

EUR/USD

Mario Centeno, a European Central Bank (ECB) Governing Council member, contended that a consistent increase in rates than necessary might backfire.

Centeno commented that higher interest rates would increase funding costs and reduce fiscal space. He further stated that budgetary considerations would not inhibit Normalization.

Following Centeno’s comment, the EUR/USD continues to drop. The currency pair even lost 0.8% on the day at 0.9655. 

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