EUR/USD Steady Ahead of ECB Rate Decision and US PPI Data

The EUR/USD pair held steady around 1.1635 in early Asian trading hours on Thursday, as traders awaited the European Central Bank's (ECB) policy meeting and US August Producer Price Index (PPI) data.

Market expectations suggest a 25 basis point interest rate hike at the ECB's September meeting, driven by elevated Eurozone inflation. The latest data shows inflation rose above 3% in August, cementing the case for a rate increase.

Alessia Berardi, head of global macroeconomics at the Amundi Investment Institute, noted that 'a September hike looks all but locked in.'

The US PPI data will also be closely watched, with traders expecting a 5.3% year-over-year (YoY) increase in August, up from 4.7% prior.