The major currency pair is under pressure on Friday. The current EURUSD quote is 1.0970.

The European Central Bank has taken the initiative in raising interest rates from the Fed and raised the cost of borrowing by 25 basis points to 4.25% per annum. In its comments, the ECB stated that the portfolio of securities acquired under the anti-crisis asset purchase programme is being reduced as planned, and the funds will be reinvested. The ECB is prepared to review all necessary instruments to bring Inflation back to the 2.00% target.

The Central Bank's assessment of core inflation remains high, but there are signals of a slight slowdown in the rally. Financial conditions in the region have tightened, and all further efforts by the ECB will be directed towards maintaining rates at a restrictive level.

The interim conclusion is that the ECB still views inflation as the primary risk factor. In September, the regulator remains open to taking any necessary actions. It is generally expected that the rate may increase to 4.50% per annum by the end of this year.

The US GDP grew by 2.4% in the second quarter, which is considerably higher than the data from the beginning of the year.

Friday will also be interesting. The US will release statistics on Core PCE, which is the inflationary component the Federal Reserve relies specifically on when making monetary decisions. Parameters of income and personal spending of Americans will also be published.

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