The Euro gains against the Dollar on expectations of a September ECB rate hike and softer USD ahead of US private employment data.
EUR/USD climbed to 1.1536 in European trading, extending gains as the US Dollar softened before July’s ADP Employment Change data. Analysts expect US private employers added 70K jobs, down from 98K in June, a key input for Fed rate decisions amid fading forward guidance.
Markets remain firmly priced for a 25-basis-point ECB rate hike in September, with TD Securities noting no shift in expectations. ECB Governing Council member Martin Kocher reiterated a data-dependent approach but emphasized the commitment to lowering inflation to 2% sustainably.
The pair holds above its 20-period moving average, reflecting technical support amid broader hawkish ECB sentiment and Fed uncertainty.