EUR/USD Holds Ground Amid ECB Rate Hike Plans and Deteriorating Inflation
The EUR/USD pair is holding its bullish structure despite being rejected near 1.1700, but the price action suggests that the September hike was already priced in.
The ECB's accounts published on August 25 confirmed that policymakers were already planning a further rate increase as soon as September, and the language used implies that another hike would be necessary unless the inflation outlook improves significantly.
The pair pulled back from last week's high past 1.1700 and this month's peak at 1.1710, but the failure point is precise: bulls could not find acceptance above the late May highs at 1.1685.
The correction underneath that rejection is mild and orderly, with spot holding above previous resistance at 1.1620, keeping the near-term bullish structure intact.