Euro Now Near a Three-Month High as ECB Hike Nears
EURUSD is turning green on the day. It tapped into some previous resistance, possibly turned support, right above the 200-day.
One thing I am noticing here. This looks like the kind of pullback that gets bought rather shallow, instead of a deeper retracement. Price is holding up near its highest since mid-May.
The ECB is widely expected to raise rates in September, following its June tightening, to ease inflation pressures triggered by the US-Iran conflict. That hike would bring the deposit rate to 2.5%. Expectations for further tightening are growing as the Middle East drags on.
Here is my main point. The eurozone is more vulnerable to the region than the US is. They are not a net exporter, and they are closer in proximity. So the war's inflation pressure hurts them more. As long as it drags on, I expect it keeps pressuring the ECB to hike further.
Watch that support hold above the 200-day.
read the full article here.
— Alan
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3August 25, 2026 2.9K 3
