Euro Holds Ground as ECB Maintains Hawkish Stance

The euro has maintained its position above $1.1650 against the US dollar due to the European Central Bank's (ECB) hawkish monetary policy stance.

This hawkish stance suggests that the ECB will continue to raise interest rates to combat inflation, which is a key factor supporting the euro's strength.

The ECB's commitment to fighting inflation contrasts with market expectations that the US Federal Reserve may pause its rate-hiking cycle, creating a policy divergence that favors the euro.