The EUR/USD hit the highest level in four days at 1.0871 and then pulled back, ending flat around 1.0840. The pair is consolidating as market participants await critical inflation data from the Eurozone and the US. The US Dollar rose during the American session despite a rally in US stocks.
European Central Bank’s rate-setters on the wires continued to talk about the need to raise interest rates further, also considering the situation in financial markets. Forecasts point to a 25 basis points rate hike at the next meeting on May 4. The hawkish comments continue to offer support to the Euro.
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