EUR/USD Stuck in Three-Week Range Ahead of ECB Rate Hike

The EUR/USD pair has been stuck in a three-week range, unable to break above the 1.1700 level despite positive economic data from the Eurozone. The Eurozone's second-quarter growth was revised up to 0.6%, beating expectations, and the Sentix investor survey jumped to 5.1 from 0.9.

However, the market is pricing in a rate hike from the European Central Bank (ECB) on Thursday, which could limit the pair's upside. The ECB is expected to lift the deposit rate to 2.5% and the main refinancing rate to 2.65%, but some economists believe that neutral is not the destination.

The Federal Reserve is also set to meet next week, with a hike priced near 58%. A soft American inflation number and a hint from Frankfurt that neutral is not the destination could push the pair above 1.1700.