Euro Holds Gains Above $1.1600 Amid Expectations of Another ECB Rate Hike

The Euro has maintained its gains above $1.1600 as investors anticipate another interest rate hike from the European Central Bank (ECB) on Thursday.

According to Andrew Kenningham, chief Europe economist at Capital Economics, 'The ECB governing council looks certain to raise its deposit rate from 2.25 percent to 2.5 percent.'

This move comes after a stronger-than-expected US jobs report showed 162K job additions in August, pushing Federal Reserve (Fed) rate-hike bets above 60%.

The ongoing Middle East tensions between the US and Iran have also fueled concerns about a wider war, potentially driving flows into safe-haven assets like the US Dollar.