Euro Climbs after ECB’s “Ground-Breaking” Aggressive Turn

The euro was on track on Friday for its best week versus the dollar since the COVID-19 pandemic hit, after a hawkish turn by the European Central Bank (ECB) sent shockwaves through markets.
Rampant inflation across many global economies has forced central banks to tighten monetary policies that had been dramatically loosened to help consumers and businesses weather the financial hit from the pandemic.
The ECB had resisted the tide. But on Thursday, despite holding rates in negative territory, President Christine Lagarde acknowledged mounting inflation risks and opened the door to potential rate hikes later this year.