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ECB seen holding rates steady as EURUSD tests key levels

Markets are watching Lagarde’s comments for any signal about September, with the euro already trading in a narrow range since June 26.

Reported · Written up by our desk · Central Banks

Forexlive reports the ECB is widely expected to keep all three key interest rates unchanged at its upcoming meeting, with markets assigning a very high probability that the deposit rate stays at 2.25%. Attention is expected to shift to ECB President Christine Lagarde’s press conference and any hints about policy in September.

Investors are looking for September-related guidance, particularly whether Lagarde continues to leave room for another rate hike. The outlook is also tied to whether the ECB views higher energy costs, which have followed renewed crude oil strength amid Middle East tensions, as a risk to broader inflation.

Forexlive also notes that EURUSD has remained trapped in exceptionally tight trading, with the pair ranging between 1.1362 and 1.1482 since June 26. The article highlights that 100- and 200-hour moving averages have converged near 1.1423, and a sustained break below nearby support at 1.1362 would increase the bearish bias, while a return above the moving averages would shift near term sentiment toward buyers.

Latest closeWTI crude $87.52 ▲3.1%

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