Euro maintains gains after bullish European remarks

Euro rose in European trade on Thursday against a basket of major rivals, maintaining gains for the second day against the dollar following bullish remarks from ECB officials.

Such remarks boosted the odds of another European interest rate hike and hurt chances of an early interest rate cut next year. 

EUR/USD

EUR/USD rose 0.1% to 1.0716, with a session-low at 1.0701, after rising 0.1% on Wednesday, the first profit in three days, resuming gains.

European Remarks

Irish Central Bank President said there's still a chance for another ECB interest rate hike, which the markets now don't expect at all.

German Central Bank President said the final stage of achieving the 2% inflation could be the hardest. 

Austrian Central Bank President said the ECB should remain cautious when it comes to inflation, and to be prepared for another interest rate hike if needed. 

Estimates

While many markets are betting on an early interest rate cut by the ECB next year, this is obviously far fetched now.

Analysts note that as inflation remains above targets, it's likely ECB policymakers will maintain tight monetary conditions for an extended duration.