EUR/USD Steady Amid Anticipation of Final ECB Rate Hike
The EUR/USD remains steady near 1.1650 as markets reassess the ECB outlook, according to Danske Bank's research team.
August inflation indicators are expected to show firmer headline inflation but contained underlying price pressures, supporting Danske's view of a final 25bp ECB rate hike in September followed by an extended pause, with the deposit rate seen at 2.50% through 2027.
The euro area is set to see inflation rise to 3.4% y/y from 3.0% y/y, while core inflation is expected to remain unchanged at 2.5% y/y, driven entirely by energy inflation.
The European Commission's business survey for the euro area in August will be closely watched, with focus on firms' selling price expectations, which have declined in recent months after rising in March and April.