• EUR/USD continues to gain ground due to risk-on market sentiment.
• The Euro avoided to react on remarks from the ECB President Christine Lagarde.
• ECB's forward-looking wage tracker maintains its indication of robust wage pressures.
• FedWatch Tool suggests around 90% and 59% probability of rate adjustment in March and May.

The EUR/USD pair continues its upward momentum for the second consecutive session on Thursday, finding support from a weakened US Dollar (USD) amid softer US yields. This reflects a notable shift in market sentiment, with expectations leaning towards no interest rate adjustment by the Federal Reserve (Fed) in March and May.

The Euro (EUR) faced challenges following the release of the seasonally adjusted Eurozone Gross Domestic Product (GDP) data, which stayed unchanged as expected for the fourth quarter. Christine Lagarde, the President of the European Central Bank (ECB), stated that recent data indicates ongoing subdued economic activity in the near term.

The US Dollar Index (DXY) faces challenges due to the improved risk appetite of investors. According to the FedWatch Tool, the probability of the Fed keeping interest rates steady in March and May has surged to nearly 90% and 59%, respectively. However, there is a 53% probability of a rate cut in June