EUR/USD Holds Steady Ahead of Crucial ECB and Inflation Data

The EUR/USD currency pair is consolidating around $1.1615 on September 8, ahead of key events in the coming days.

The European Central Bank (ECB) decision on September 10 and the U.S. Consumer Price Index (CPI) release on September 11 are weighing heavily on market expectations.

Following a strong Non-Farm Payrolls (NFP) report, the probability of a September Federal Reserve rate hike has increased to around 60%, although this has yet to translate into sustained dollar strength.

Treasury yields have pulled back slightly from Friday's highs, allowing the EUR/USD pair to recover and move above $1.1600.