In European trade on Tuesday, the euro gained ground against a group of significant competitors, continuing its advances against the dollar for the third session. It also nearly reached a three-month high ahead of the testimony of European Central Bank President Christine Lagarde before the Brussels Parliament.
The testimony may provide information on how European monetary policy will develop going forward and how the battle against inflation may pan out.
USD/EUR
After climbing 0.3% on Friday, the second straight day of profit, and getting closer to a three-month high at 1.0965, EUR/USD increased 0.15% to 1.0959, with a session-low at 1.0926.
The pair had a weekly gain of 0.25% last week, its second in a row, as worries about the US interest rate differential subsided.
Lagarde's Verdict
Christine Lagarde, the president of the European Central Bank, will speak later today in front of the European Parliament.
The present cycle of policy tightening by the ECB is expected to have concluded by most investors, and discussion now centres on when the next interest rate decrease would likely occur.
Recently, Lagarde emphasised the need to continue being vigilant until it is established that inflation has decreased to the 2% targets.
