EUR/USD Range-Bound Ahead of Key Economic Data Releases
The EUR/USD remains range-bound as investors await key economic data releases this week. The European Central Bank's (ECB) policy decision on Thursday, September 10, is likely to be a hike in interest rates, which could impact the euro's value.
Rising oil prices have weighed heavily on risk appetite and are putting pressure on the euro. If oil prices break the $100 barrier and stay there for a while, it could further hurt the euro. However, recent data suggests that economic growth in the Eurozone has been stronger than expected, which is keeping the EUR/USD supported.
The US inflation data releases are also crucial this week, with the producer price index (PPI) on Tuesday and consumer price index (CPI) on Friday. The CPI release is particularly important as it will be the last major update before the Federal Reserve's next meeting.
Technical analysis suggests that the EUR/USD could drop further if oil prices continue to rise. If support levels are broken, 1.1500 and 1.1405 could become key targets for the pair.