In the Asian session on Tuesday (May 23), EUR/USD first fell and then rose, temporarily reporting 1.0816, an increase of 0.03%. Recently, a number of ECB officials expressed their support for raising interest rates, which helped to support the euro.
European Central Bank Governing Council Pablo Hernandez de Cos said that the European Central Bank still has some way to go in raising interest rates, and borrowing costs should remain high for a longer period of time to control inflation. He said higher interest rates were tightening credit conditions, with surveys showing banks were more reluctant to lend to consumers and businesses. The impact of rate hikes on the economy and inflation will be more pronounced this year and peak in 2024, de Cos said. ECB Governing Council member Francois Villeroy de Galhau said interest rates will peak at the next three meetings and that rate hikes are not necessarily required at each meeting.
