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EUR/USD holds above 1.1600 as rate repricing fails to move the euro

FXStreet notes EUR/USD has made no progress over three chances in four sessions, while US payrolls pushed Fed hike odds to 58% from 49.4%.

Reported · Written up by our desk · Major Pairs

EUR/USD is holding above 1.1600, about seven pips higher than Monday’s open, despite a week of catalysts that have failed to shift the pair, FXStreet said.

The outlet pointed to expectations that both the European Central Bank and the Federal Reserve are priced to raise rates this month in response to the same energy shock, leaving little in the way of a widening rate gap to support euro moves.

FXStreet also tied the lack of FX follow-through to US data, saying Friday’s Nonfarm Payrolls came in at 162K versus a 53K consensus, driving September Fed hike odds to 58% from 49.4%.

Looking ahead, FXStreet said the euro’s next key test is the ECB decision Thursday, where it is expected to lift the deposit rate to 2.5% and the main refinancing rate to 2.65%, while Germany’s regional election results and recent Eurozone data have already produced only brief, move-and-reverse trading ranges.

Latest closeEUR/USD 1.159 ▼0.1%

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