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EUR/USD holds near 1.1550 as traders await US CPI amid Iran risk

The Fed outlook has cooled after disappointing US Nonfarm Payrolls, while investors also weigh oil driven inflation risks linked to the Strait of Hormuz.

Reported · Written up by our desk · Major Pairs

EUR/USD was steady in the Asian session, trading around 1.1545 to 1.1550, as FXStreet reported traders held back from big positioning ahead of key US inflation releases.

Spot prices stayed close to the pair’s highest level since June 17, after weaker-than-expected US Nonfarm Payrolls led investors to scale back expectations for an immediate Federal Reserve rate hike, limiting support for the US dollar.

FXStreet said the focus remains on whether the Fed will still tighten by year end, amid inflation risks tied to oil price volatility connected to the Iran crisis. The report also pointed to Iran ruling out negotiations with Trump until after his term ends on January 20, 2029, and to continued disruptions including a blockade tied to Houthis affecting key shipping routes.

Cleveland Fed President Beth Hammack said the current rate is not meaningfully restricting the economy and that more hikes may be needed to keep the Fed on track toward its 2% inflation goal, FXStreet added. The upcoming US Consumer Price Index and Producer Price Index releases, due this week, are expected to provide additional cues for the Fed’s policy path and influence EUR/USD.

Latest closeEUR/USD 1.155 ▲0.2%

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