EUR/USD Posts Weekly Gain in the Fed and ECB Aftermath

The EUR/USD pair reached a fresh one-month high on Friday and is headed to post its second weekly advance in a row following the Federal Reserve (Fed) and the European Central Bank (ECB) decisions on monetary policy.

At the time of writing, the EUR/USD pair is trading at the 1.0925 area, slightly down on the day but on track to post a 1.7% weekly advance.

On Thursday, the European Central Bank (ECB) announced its decision to raise its main rates by 25 basis points and offered a hawkish stance as President Christine Lagarde said the board is “not thinking about pausing.”   

A day before, the Federal Reserve decided to skip a rate increase but kept the hawkish rhetoric, diminishing prospects of rate cuts for the remainder of the year. Next week, Powell will testify before the US Congress. 

Overall, the euro benefited from the central banks’ aftermath, rising over 100 pips over the last two days.