Wednesday, 13 August 2025
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EUR/USD Holds Around 1.1650 Due To Cautious Tone Surrounding ECB Outlook
Monday, 11 August 2025 09:56 WIB | EUR/USD |EUR/USD

EUR/USD strengthened slightly after posting losses in the previous session, trading around 1.1650 during the Asian session on Monday (August 11th). The pair was supported by a strengthening euro (EUR), driven by prevailing expectations that the European Central Bank (ECB) will end its easing cycle in September.

Furthermore, the euro was supported by improving market sentiment due to the possible end to the Ukraine-Russia war. News of a possible Trump-Putin meeting next week has some hoping for a deal that could end hostilities in Ukraine.

The EUR/USD pair also strengthened as the US dollar (USD) weakened following weak US economic data, prompting traders to price in the possibility of further interest rate cuts this year. The market currently prices an 89% chance of a Fed rate cut at its September meeting. Traders are also pricing in a possible 58 basis point rate cut by the end of this year.

Fed Governor Michelle Bowman stated on Saturday that three interest rate cuts are likely appropriate this year. Bowman added that the apparent weakness in the labor market outweighs the risk of higher inflation in the future.

Traders will likely be watching US consumer inflation figures due on Tuesday, followed by the release of preliminary UK Q2 GDP data and the US Producer Price Index (PPI) on Thursday. These key data are expected to provide significant momentum for spot prices and guide the next phase of the directional move. (alg)

Source: FXstreet

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