EUR/USD Rallies on ECB Hawkishness Amid In-Line US Inflation

The EUR/USD pair has seen significant gains in recent hours, reaching near 1.1655 during European trading hours on Thursday.

This upward trend is largely attributed to the hawkish stance of the European Central Bank (ECB), which has strengthened the Euro against the US dollar.

According to market expectations, there's a nearly 96% probability that the ECB will increase the deposit rate to 2.50% at its September policy meeting, as mentioned by the ECB Watch tool.

This hawkish rhetoric from ECB policymakers has underpinned the shared currency, with Executive Board member Isabel Schnabel emphasizing the need for higher borrowing costs due to ongoing geopolitical tensions and a resilient Eurozone economy.