ECB Rate Decision Looms as US CPI Report and Oracle Earnings Await

The upcoming week is set to be pivotal for financial markets, with several key events on the horizon. On Thursday, the European Central Bank (ECB) will announce its interest rate decision, which could have significant implications for the euro's value against the US dollar.

Market analysts expect a near-100% chance of a rate hike at this week's meeting, but the ECB is not anticipated to raise rates again until possibly spring 2027. The key question is whether the ECB will provide any guidance on when the next increase might occur.

The euro has been struggling to strengthen against the dollar recently, despite markets pricing in a September rate hike. A dovish outlook from the ECB could put further pressure on the currency, potentially triggering a decline towards longer-term support around $1.135 if it breaks below $1.155.