The U.S. dollar strengthened on Thursday after the Federal Reserve left borrowing costs unchanged but signaled further rate hikes to come.
"Fed delivered a hawkish skip," said Mohit Kumar, chief financial economist Europe at Jefferies.
Money market traders are expecting the ECB to raise the deposit rate by 25 basis points, with a further quarter-point hike seen in July. "Our preference is for the US economy to do better than the euro zone ... and hence the dollar looks like a more attractive currency to buy compared to many other currencies, including the euro," Lomholt added.follows on Friday when it is expected to maintain its ultra-dovish stance and yield curve control settings.
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