Traders await Wednesday’s US inflation report, which may influence Fed rate expectations and drive the next move in the currency pair.
EUR/USD remains range-bound around 1.1546, unchanged on the day, as the US Dollar stabilizes near recent lows. Geopolitical tensions, including developments in the Middle East, are keeping traders cautious ahead of key economic data.
The pair has traded sideways for the past week, with attention shifting to Wednesday’s US Consumer Price Index report. The data could shape Federal Reserve policy expectations for September, potentially impacting the Dollar’s trajectory and EUR/USD movements.
Commerzbank analysts expect the Euro to grind higher over the medium term, citing eroding Fed independence and Dollar overvaluation. The bank projects EUR/USD at 1.18 by mid-2027, down slightly from its previous forecast of 1.20.