ECB's Knot: ECB has sent a forceful signal with rate rise

European Central Bank (ECB) policymaker Klaas Knot said on Friday that the ECB has sent a forceful signal with the 75 basis points rate hike, as reported by Reuters.

Knot further noted that the uncertainty surrounding the inflation outlook was too big and that it was making it difficult for them to give forward guidance. "Curbing the dynamic in inflation is the ECB's only concern," Knot added.

Market reaction

The shared currency continues to gather strength during the European trading hours on Friday. As of writing, the EUR/USD pair was trading at 1.0105, rising 1.1% on a daily basis.