EUR/USD Eyes ECB Decision as Rate Hike Expectations Rise

The EUR/USD is trading around $1.1645 on September 9 as investors await the European Central Bank's (ECB) decision tomorrow.

The main factor driving the market today is no longer the US labor market, but rather the ECB's guidance and its implications for monetary policy in the eurozone.

Futures markets have already priced in a 25-basis-point increase in the deposit rate, from 2.25% to 2.50%, so any move itself is largely anticipated.

The key factor will be Christine Lagarde's rhetoric and the updated inflation and GDP forecasts, which could signal whether 2.50% is the final point or if there are plans for further action.