The euro was trading at $1.08 after hitting $1.086 earlier in the session after the Federal Reserve kept the interest rates steady, as expected, but signaled two more rate hikes by year-end if the economy and inflation do not slow down more. Also, the ECB is widely anticipated to deliver another 25 basis points rate hike on Thursday to address persistent inflationary pressures. The Eurozone economy is experiencing a mild recession, as revised GDP figures revealed a contraction of 0.1% in Q1, contrary to the initial projection of 0.1% expansion. Other economic data showed the bloc’s labor market remained tight, while consumer and producer inflation rates decelerated more than anticipated.
