Euro trimmed its losses in European trade off two-week lows against dollar following record-high inflation data in Europe, bolstering the case for a 0.5% rate hike at the next meeting.
ECB President Christine Lagarde said this week the ECB is committed to controlling inflation even if that led to economic pain.
Prices Today
EUR/USD fell 0.45% to 1.0433, with a session-high at 1.0485, while trimming the losses to 0.1% after the inflation data.
Euro rose 0.4% on Thursday, the first profit in three days, off two-week lows at 1.0382.
Record Inflation
Europe's consumer prices rose to 8.6% in June, highest on record, above estimates of 8.5%, and above May's 8.1% reading.
Core prices, including food and fuel, rose 3.7%, missing estimates of 3.9%, and below 3.8% in the previous reading.
Lagarde
Christine Lagarde said the ECB is working on controlling runaway inflation no matter the consequences, however she doesn't expect the euro zone to fall into remission.
European Rates Estimates
Analysts are going as far as expecting the ECB to hike rates by 0.5% in July, even if a 0.25% hike is still the predominant bet here.