EURUSD took a huge hit after the ECB meeting.

The major currency pair dropped to its 2-week lows. The current quote for the instrument is 1.0619.

The EUR was attacked from two fronts at the same time – the rally in US bond yields and the decisions made by the European Central Bank.

The “greenback” continues to get much support from the rally in US bond yields. Another reason is that the global investment world is trying to escape risks and the USD attracts a lot of attention as a “safe haven” asset.

As for the decisions made by the ECB, the situation is rather calm because they were expected, totally. The benchmark interest rate remained unchanged at zero; however, the regulator is planning to raise it by 25 basis points in July, while the next rate hike might occur in September. All further rate decisions will be made based on the latest statistics and forecasts.

By the way, the major QE (APP) programme will be closed by 1 July. It might be high time for the ECB to tighten its monetary policy.

Probably, market players were expecting the European regulator to be more “hawkish”, but alas.

Later today, investors’ attention will be focused on the Consumer Price Index report from the US, which might be one of the most important readings in anticipation of the US Fed’s upcoming meeting scheduled for the next week.