Euro Holds Steady Ahead of ECB Rate Hike Expectations

The euro has maintained its strength, hovering above $1.165 in the final full week of August, marking its highest level since mid-May.

This comes as investors prepare for a potential interest rate hike by the European Central Bank (ECB) in September, following its June tightening to combat inflation pressures triggered by the US-Iran conflict and its impact on energy prices.

Oil remains above $90 per barrel, posing risks of further supply constraints for refined fuels, low Eurozone gas inventories, and a prolonged conflict that could extend beyond the US midterm elections in November.