2023.03.2213:35:00UTC+00Euro Higher Amid ECB Lagarde's Hawkish Comments

The euro firmed against its major counterparts in the European session on Wednesday, as European Central Bank President Christine Lagarde remarked that region's inflation remained strong and the central bank is determined to bring it back to target.

There is no trade-off between price stability and financial stability, Lagarde said in a speech at the "ECB and Its Watchers XXIII" conference.

"But the public can be certain about one thing: we will deliver price stability, and bringing inflation back to 2% over the medium term is non-negotiable," Lagarde added.

Investors focus on the Fed's policy meeting ending later in the day. Economists expect the Fed to hike rate by 25 basis points 4.75-5.00 percent.

Risk sentiment improved as U.S. Treasury Secretary Yellen promised to protect depositors at smaller institutions amid the banking crisis.

The euro appreciated to a fresh 5-week high of 1.0798 against the greenback and a 1-week high of 143.60 against the yen, from its early lows of 1.0758 and 142.38, respectively. The euro may locate resistance around 1.10 against the greenback and 145.00 against the yen.

The euro recovered to 1.7391 against the kiwi and 1.6151 against the aussie, up from its prior lows of 1.7301 and 1.6055, respectively. The next possible resistance for the euro is seen near 1.75 against the kiwi and 1.63 against the aussie.

The euro rebounded modestly against the pound, with the pair trading at 0.8792. The euro is likely to find resistance around the 0.90 level.

The euro touched 1.4803 against the loonie, a level not seen since September 2001. If the currency continues its rise, 1.50 is possibly seen as its next resistance level.

The euro was higher against the franc, at 0.9959. On the upside, 1.03 is possibly seen as its next resistance level.

Looking ahead, at 2:00 pm ET, the Fed announces its decision on interest rate. The central bank is expected to raise the target range for the federal funds rate by 25 basis points to 4.75 percent to 5.00 percent.