EUR/USD Edges Higher on Rate Hike Expectations Amid German CPI Data Release
The EUR/USD pair is trading in positive territory around 1.1590 during early European trading hours on Monday, but potential upside might be limited due to increased bets on a rate hike following hawkish remarks by Federal Reserve Chair Kevin Warsh.
Warsh's comments at the Jackson Hole economic symposium on Friday stated that the US central bank will 'have work to do' if policymakers don't get confidence that inflation is heading down to 2%. This has fueled expectations of a September rate hike, supporting the US Dollar against the Euro.
The EUR/USD pair holds a mildly bullish near-term tone as spot remains above the 100-day simple moving average (SMA), while pressing just under the 20-day Bollinger SMA. Initial resistance is aligned at the August 26 high of 1.1677, and a stronger barrier emerges at the upper Bollinger band around 1.1710.