The Euro is under further pressure today after a hawkish speech over the weekend by US Federal Reserve President Janet Yellen.

After breaking through the US1.15c mark recently the European currency has pulled back sharply towards US1.11c on the expectations that the US Fed will hike interest rates next month after many had predicted a move later in the year.

Harvard University, Yellen noted that the chances of a rate hike was a real possibility although the final decision would be data dependent and the Fed would keep an eye on key economic indicators in the nearest future.

She also stressed that any future moves would be gradual so not to shock the market and derail the fragile recovery of the world economy after the 2008 financial crisis.

“It’s appropriate, and I have said this in the past,for the Fed to gradually and cautiously increase our overnight interest rate over time,” Yellen said,

 “and probably in the coming months such a move would be appropriate.”. she added.

The market is now pricing in a more than 30 percent chance that the US central bank will lift