EUR/USD Steady Ahead of US Inflation Figures Amid Middle East Crisis

The EUR/USD pair has been struggling to gain traction and is currently trading around the 1.1545-1.1550 area, as traders wait for further developments surrounding the Middle East crisis and this week's release of US inflation figures.

Despite the disappointing US Nonfarm Payrolls report, which led investors to scale back their expectations for an immediate interest rate hike by the Federal Reserve, the EUR/USD pair has managed to hold steady. This is largely due to the fact that investors are still pricing in the possibility of a rate hike by the end of the year amid inflation risks stemming from volatility in oil prices.

The latest developments surrounding the Middle East crisis have dampened hopes for a swift reopening of the Strait of Hormuz, leading to a rise in crude oil prices. This has fueled inflation fears and is expected to be reflected in this week's US Consumer Price Index (CPI) data, due on Wednesday.

Cleveland Fed President Beth Hammack emphasized the need for some number of rate hikes to meet the 2% inflation goal, while TD Securities highlighted that recent inflation dynamics will likely keep the Federal Reserve looking at August inflation data ahead of their September meeting.