EUR/USD Sticky Amid ECB Decision and US Data
The EUR/USD exchange rate remains steady near 1.1625 on Monday as investors await key economic data and monetary policy announcements this week.
The European Central Bank's (ECB) decision on Thursday is a major trigger for the currency pair, with Deutsche Bank expecting a 25-basis-point interest rate increase to 2.50%. Investors will closely watch the ECB's guidance on further tightening beyond this move.
On Friday, the US Consumer Price Index (CPI) data will provide fresh cues regarding the Federal Reserve's monetary policy outlook, which has seen its interest rate hike expectations rise following last week's upbeat Nonfarm Payrolls (NFP) data. BNY strategists highlight that the NFP surprise pushed market-implied odds of a September Fed hike back up to 60%.
The EUR/USD technical analysis shows the pair trading above the 20-day Exponential Moving Average (EMA) at 1.1600, with immediate support emerging at this level and resistance at the August high around 1.1713.