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EUR/USD holds near 1.154 as markets price a September ECB hike

The euro is supported by expectations for a 25 basis point ECB rate increase in September, while the dollar remains pressured ahead of US ADP Employment Change data.

Reported · Written up by our desk · Major Pairs

EUR/USD edged slightly higher in European trading on Wednesday, trading around 1.1536 to 1.1537 as the US dollar weakened ahead of US ADP Employment Change data for July.

According to FXStreet, expectations call for US private employers to have hired 70K workers in July, down from 98K in June, and the report could influence Federal Reserve rate expectations since the Fed has stopped providing forward guidance.

FXStreet said investors are continuing to fully price a 25bp ECB rate hike in September, its base case, with the ECB guidance framed around keeping inflation on a sustainable path toward the 2% target.

Technically, FXStreet noted EUR/USD is holding above the 20-period exponential moving average near 1.1461, with resistance around 1.1544, and a retreat below the 20-period EMA could expose the pair to the July 28 low near 1.1353.

Latest closeEUR/USD 1.153 ▼0.1%

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