EUR/USD trims gains as hawkish remarks digested

The EUR/USD pair’s rally slowed down following the ECB rate hike and hawkish remarks from central bankers. US Consumer Sentiment improves, supporting a stronger USD; Eurozone inflation slows as expected.

Hawkish stances by both ECB and Fed officials hint at potential further tightening. Upcoming key events include the German May PPI, the EU’s General Council meeting, and US housing market data.

The pair is trimming some of its previous day’s gains amidst mixed market sentiment. Central bank speakers are grabbing the most headlines, amidst the lack of news, besides Eurozone inflation. At the time of writing, the EUR/USD is trading at 1.0920, down 0.23%.

Market participants’ sentiment is mixed, as shown by US equities. The latest round of economic data from the United States showed an improvement in Consumer Sentiment, as revealed by the University of Michigan at 68.0 vs. May’s Final 64.9. Regarding inflation expectations for a one-year period, they were downward revised from May 4.2%, while June data came at 3.3%.