EUR/USD Gains on Expected ECB Rate Hike in September

The EUR/USD pair gained 0.17% to around 1.1550 during the European trading session on Friday as expectations of a September interest rate hike by the European Central Bank (ECB) boosted the Euro.

A Reuters poll found that 57 out of 69 economists believe the ECB will raise its deposit rates by 25 basis points to 2.50% in September, with market experts confident about the bank tightening monetary conditions to combat inflationary pressures.

HSBC analysts highlighted a growing divergence in global policy outlook, noting that while the ECB is poised for another rate rise in September, other major central banks face tougher choices due to conflicting demands of managing inflation and keeping policy on hold.