Euro Edges Lower to 1.1612 After ECB Raises Rates 25 Basis Points

The muted currency reaction suggests the hike was fully priced, so the signal here is less about the decision itself than about what it implies for the ECB's path. A move that matches forecasts shifts attention to whether further tightening follows or whether this marks a pause. That question, not the headline rate change, is what shapes euro sentiment from here.