EUR/USD Volatility Rises as Oil Prices Approach $100
The EUR/USD pair is facing increased volatility as oil prices continue to rise, adding pressure on the euro. The Brent crude price has approached the psychologically important $100 level and is still pointing higher, which could shift the market's attention towards energy prices and their implications for inflation.
The European Central Bank's (ECB) decision on Thursday will be closely watched, as it comes between two important US inflation releases. The ECB's rate decision may validate or push back against expectations of a more hawkish monetary policy, which could impact the euro's value.
US inflation data, including the consumer price index release on Friday, will also provide direction for the EUR/USD forecast. The market is expecting a moderate US inflation update, but any significant deviation from expectations could influence US monetary policy and, in turn, affect the euro.