Euro Steadies Ahead of ECB Rate Decision Amid Surging Energy Prices

The Euro has steadied above 1.1600 ahead of the European Central Bank's (ECB) interest rate decision on Thursday. The ECB is expected to raise its benchmark rate by 25 basis points to 2.5%, driven by surging energy prices due to the ongoing US-Iran conflict.

Alessia Berardi, head of global macroeconomics at the Amundi Investment Institute, said 'A September hike looks all but locked in.' She added that inflation remains elevated and should stay sticky over the next few months before easing toward the second half of next year.

The US Producer Price Index (PPI) data is also set to be released on Thursday, with analysts expecting a 5.3% year-over-year increase in August. Higher-than-expected inflation numbers could boost the US Dollar and create a headwind for the Euro.