EUR/USD Edges Higher Amid ECB Anticipation

The Euro (EUR) has been trading slightly higher against the US Dollar (USD), hovering near the 1.1625 mark on Monday's European session.

This comes as markets are influenced by an extended weekend in the United States due to Labor Day, leading to a relatively flat market.

The major trigger for the EUR/USD pair this week will be the European Central Bank's (ECB) monetary policy announcement on Thursday and the release of the US Consumer Price Index (CPI) data on Friday.

Deutsche Bank analysts predict that the ECB's policy decision will be 'the key event' for European markets, with investors expecting a 25bp rate increase to 2.50% and closely watching any guidance regarding further tightening beyond this week's move.