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EUR/USD trades flat as Dollar steadies, ECB flags Euro strength concerns
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FXStreet Forex & Commodities News
The Euro (EUR) trades little changed against the US Dollar (USD) on Thursday, with EUR/USD struggling to find direction as a firm Greenback caps upside attempts.
At the time of writing, the pair trades around 1.1952 after touching its highest level in over four years earlier this week.
However, the US Dollar is showing signs of stabilisation, drawing some support as traders reassess the Fed’s monetary policy outlook following Wednesday’s interest rate decision.
That said, the Euro’s sharp recent appreciation is beginning to draw attention from European Central Bank (ECB) officials, reviving concerns that a persistently stronger currency could eventually complicate the policy outlook.
Even so, the ECB is still widely expected to leave policy unchanged at its next meeting on February 4-5.