EUR/USD Exchange Rate Sees Mixed Trading Following ECB Decision

The EUR/USD exchange rate has experienced a mixed trading session following the European Central Bank's (ECB) decision to raise interest rates. The deposit rate was increased from 2.25% to 2.50%, and the main refinancing rate moved from 2.40% to 2.65%. According to Christine Lagarde, economic activity in Europe has been performing better than expected, but inflation remains a concern.

The ECB's decision was widely anticipated by markets, which may have limited the euro's ability to extend its recovery following the announcement. Additionally, ongoing expectations regarding the U.S. dollar continue to generate caution within the market.

Attention is now shifting towards tomorrow's release of the U.S. Consumer Price Index (CPI) report, which could alter expectations surrounding the Federal Reserve and potentially impact the EUR/USD exchange rate.