EUR/USD at Risk as Oil Prices Soar and ECB Decision Looms

The EUR/USD is set to be affected by various factors this week, including oil prices, US inflation data, and the European Central Bank's (ECB) rate decision.

Oil prices have been rising, with Brent approaching the $100 level. This increase in energy costs could put pressure on the euro, particularly if it leads to higher inflation in the eurozone.

The ECB's decision on Thursday is also crucial, as markets are expecting a more hawkish policy. However, if the ECB signals that it will look through the oil-price shock and not tighten policy further, the single currency could come under renewed pressure.