EUR/USD Steady as US Dollar Stabilizes Amid Fed Uncertainty
The EUR/USD pair is trading steadily at around 1.1553 on Monday as the US Dollar steadies following its post-NFP weakness.
The sideways trading comes amid uncertainty over the Federal Reserve's monetary policy path and developments in the Middle East, with investors assessing the implications of weaker-than-expected US Nonfarm Payrolls data for July.
Elevated Oil prices are raising concerns that inflation could stay above the Fed's target for longer, preventing traders from fully ruling out a rate hike at the September meeting.
According to the CME FedWatch Tool, markets still price in around a 44% chance of a September hike, with analysts at ING highlighting that the ECB has effectively given markets 'a quasi-commitment to a September hike,' limiting the scope for fresh policy surprises from the Eurozone side.