EUR/USD Range Bound as ECB and US Inflation Data Loom
The EUR/USD remains driven by front-end rates, and market analysts are closely watching the upcoming policy decision from the European Central Bank (ECB) for any changes to their monetary policy outlook. The ECB's September hike is now fully priced in, with a second move heavily favored by December.
On the US side, inflation data may determine the fate of the Federal Reserve's interest rate hikes. If the Consumer Price Index (CPI) and Producer Price Index (PPI) reports show high readings, it could lead to a September Fed hike, but if they are low, markets might reassess and point towards December as the more likely meeting for a rate increase.
The EUR/USD has been ranging between 1.1500 and 1.1710 due to key moving averages containing the pair, with resistance levels at 1.1733 and 1.1785.