Euro Holds Steady Amid ECB Rate Decision

The European Central Bank (ECB) held its main refinancing rate at 2.4% in a widely expected move, but traders are still looking ahead to a potential hike in September.

Despite the lack of significant news from the ECB's meeting, the bank stressed that future hikes depend on how long oil remains relatively expensive and inflation high.

Inflation in the eurozone has been above target for several months, but it fell more than expected to 2.8% last month. The next key release is flash inflation data for July, which could strengthen or dampen expectations for a hike to 2.65% in September.

The euro's reaction also depends on the situation with GDP growth, which has been weak for several years in the eurozone. The ECB's job is to manage inflation while avoiding making economic conditions excessively difficult.