The euro fell against the dollar despite the European Central Bank’s decision to raise its interest rates as traders consider the possibility of an end to the rate hike cycle in reaction to the central bank’s statement and its president’ comments.
The euro has been declining since its peak in July, weighed by the deteriorating economy in the euro area while its US equivalent maintained a solid posture.
In this regard, strong US economic data could continue to fuel some concerns about a potential interest rate hike in the US this year.
After the ECB’s decision, traders’ attention will turn to the Federal Reserve’s meeting next week.
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