The euro traded at $1.10 heading into the end of April, close to high levels not seen in a year, as investors braced for further rate hikes by the ECB next week. While the Fed is expected to pause its tightening cycle soon, the ECB is seen raising borrowing costs for a seventh time. However, the size of the move is not definitive, with most investors betting on a 25bps increase and others projecting a bigger 50bps. Comments from several ECB members on the matter also differ. ECB Schnabel told Politico that a 50bps rate hike was not off the table, while Villeroy de Galhau called for limited increases.
