Euro Soars to Two-Month High on Rate Hike Expectations

The Euro has reached a two-month high against the US dollar, rising to $1.1609 on Wednesday. This increase is attributed to expectations of a rate hike by the European Central Bank (ECB), amidst the Federal Reserve's decision to keep rates steady. The ECB's chief economist, Philip Lane, noted that the Euro Area's 3% inflation rate remains too high for potential adjustments to policy rates.

Elevated energy prices remain a concern for the Euro Area, particularly as tensions in the Middle East show little sign of easing. Market participants are now awaiting the ECB President Christine Lagarde's speech, scheduled for later today.