Traders await ECB President Lagarde’s remarks and US employment figures amid Middle East tensions and shifting Fed rate expectations.
The EUR/USD pair remains steady around 1.1385 in early European trading as investors weigh geopolitical risks and central bank policies. Recent US-Iran talks have eased immediate tensions, but Tehran’s warnings over the Strait of Hormuz continue to fuel inflation concerns.
Market focus shifts to this week’s ECB forum and US June jobs report, which could influence monetary policy outlooks. A hawkish turn from former Fed chair Kevin Warsh earlier this month has already reversed expectations for US rate cuts in 2024, supporting the USD.
ECB President Christine Lagarde’s speech today may provide clues on the central bank’s response to lower oil prices and market volatility. Hawkish signals could bolster the EUR, while dovish tones may weigh on the currency.