Euro drifts higher above 1.1650 on hawkish ECB stance
The EUR/USD pair gains ground to near 1.1655 during the early European trading hours on Thursday. The Euro (EUR) strengthens against the Greenback on the hawkish stance of the European Central Bank (ECB). The US Initial Jobless Claims data is due on Thursday.
The Euro gained strength against the US Dollar during early European trading on Thursday, reaching near 1.1655. The Euro's rise was attributed to the European Central Bank's (ECB) hawkish stance. The US Initial Jobless Claims data was due on Thursday, prompting traders to focus on the upcoming Jackson Hole symposium on Friday. The ECB is expected to raise the key interest rates in September, with a 96% probability according to ECB Watch tool, as borrowing costs need to increase further due to geopolitical tensions and the strong Eurozone economy.
ECB Executive Board member Isabel Schnabel stated that further rate hikes are necessary to combat inflation risks posed by the Middle East conflict. Eurozone data showed business activity growing at its fastest pace this year, with the Fed's preferred inflation gauge holding steady at 3.3% YoY in July. The Fed's Chairman Kevin Warsh is set to deliver a speech in Jackson Hole, Wyoming, which may provide insights into US interest rates.
The Euro remains above both the 100-day simple moving average and the Bollinger middle band, indicating a bullish bias. Immediate resistance is at 1.1710, while support is seen at 1.1587 and the 100-day SMA at 1.1575.
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