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EUR/USD holds near one-and-a-half-week highs ahead of ECB and US PPI

Traders are positioning for a likely 25 bps ECB rate hike and will watch ECB President Christine Lagarde’s post-meeting remarks for signs of the future policy path.

Reported · Written up by our desk · Major Pairs

EUR/USD is trading just below the mid-1.1600s, staying close to a one-and-a-half-week high as dip-buyers appear but follow-through remains limited, according to FXStreet.

Attention is centered on the European Central Bank meeting, where a 25 bps rate hike for the second time this year is widely viewed as a done deal, shifting the market focus to the post-meeting press conference and comments from ECB President Christine Lagarde.

FXStreet also points to upcoming US data, with the US Producer Price Index expected to be important for the Federal Reserve’s September 15 to 16 meeting, while rising Fed rate hike expectations and renewed US-Iran tensions could support the safe-haven US dollar and cap EUR/USD.

On the technical side, spot prices remain above the 200-period EMA on the 4-hour chart around 1.1582 and have reclaimed the 23.6% Fibonacci retracement near 1.1625, with resistance flagged near 1.1709 and support clustered around 1.1625 and the 1.1580 to 1.1570 area.

Latest closeEUR/USD 1.164 ▲0.1%

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