Euro Stands Firm Above $1.1650 as ECB Signals Hawkish Turn

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

This shift in tone suggests that the ECB may begin normalizing its policies sooner than expected, which is a departure from the Federal Reserve's more cautious approach.

Several ECB policymakers have expressed concerns about rising inflation, hinting at potential asset purchases tapering and interest rate hikes earlier than anticipated.

The eurozone economic data has also been improving, contributing to the currency's strength. However, a stronger euro can impact export competitiveness for eurozone companies.