Euro Edges Higher as Fed Holds Rates, ECB Hike Bets Build Ahead of US Jobs Data

The Euro has edged higher against the US Dollar as the Federal Reserve maintained its benchmark interest rate at 3.50%-3.75% despite growing expectations of a September hike by the European Central Bank (ECB).

In the last week of July, the EUR/USD rose over 1.1%, touching 1.1530 before closing near 1.1500.

The escalation of tensions between the US and Iran led to increased demand for the US Dollar early in the week, but sentiment steadied as strikes paused and talks began.

The Fed's decision was not unanimous, with three regional presidents dissenting from a rate hike.

US macro data showed slowing Q2 GDP growth at 1.5% annualised and rising core PCE inflation at 3.3%, but the ECB still has room to maneuver before its own meeting in September.