EUR/USD at a Crossroads Ahead of ECB Decision and US Inflation Data
The EUR/USD pair has been calm this week as traders focus on upcoming US inflation data and the European Central Bank's interest rate decision. The ECB is expected to hike rates by 25 basis points, but market participants are not expecting an immediate effect on the pair.
Economists expect Thursday's producer inflation numbers and Friday's consumer inflation numbers to show elevated energy prices, which could lead to a possible Federal Reserve interest rate hike next week. The average gasoline price has jumped to over $4.1 per gallon, while diesel prices have risen to $5.9.
The daily chart shows the EUR/USD pair holding steady above an ascending trendline and forming a mini golden cross pattern, which could lead to a rebound after the ECB decision. If this happens, the next key level to watch will be 1.1709, its highest level in August.