{
  "id": 3631033,
  "title": "Euro holds gains above 1.1650 on hawkish ECB bias",
  "url": "https://urgent.news/2026/08/27/euro-holds-gains-above-1-1650-on-hawkish-ecb-bias",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-27T00:57:08.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/euro-holds-gains-above-11650-on-hawkish-ecb-bias-202608270057"
  },
  "original_language": "en",
  "account": "The Euro (EUR) strengthened to approximately 1.1655 against the US Dollar (USD) early on Thursday, buoyed by the European Central Bank's (ECB) hawkish stance. Traders will be attentive to the upcoming Jackson Hole Symposium on Friday, hoping for further support. The ECB is expected to increase interest rates in September, following June's tightening to curb inflation amidst geopolitical turbulence. According to Reuters, there is a 25% probability of the ECB deposit rate reaching 3.0% by March 2027, and a 60% chance by September. ECB Executive Board member Isabel Schnabel stated that borrowing costs will need to rise further due to the protracted conflict in the Middle East and the unexpectedly robust euro-zone economy posing upside risks to inflation. Meanwhile, the Federal Reserve's preferred inflation indicator, the core Personal Consumption Expenditures (PCE) Price Index, remained unchanged at 3.3% year-over-year in July, as reported by the US Bureau of Economic Analysis (BEA) on Wednesday. The headline PCE Price Index also remained steady at 3.7% YoY in July, surpassing the consensus of 3.6%. In July, both the PCE Price Index and the core PCE Price Index increased by 0.2% monthly. Traders will observe Fed officials' speeches at the Jackson Hole symposium for additional guidance. Scotiabank analysts emphasize that ECB policy expectations remain firmly tilted towards further rate hikes, with markets pricing in 24 basis points of tightening for the September meeting and a cumulative 40 basis points by the end of the year. This persistent hawkish sentiment continues to bolster Euro sentiment despite the currency's recent rally showing signs of consolidation. On the daily chart, EUR/USD has breached both the 100-day simple moving average (SMA) and the Bollinger Bands' 20-period SMA, signaling a bullish bias. The price is nearing the upper half of the Bollinger envelope, serving as a potential overhead supply, while the Relative Strength Index (14) at 65.8 indicates overbought conditions, suggesting that the upside momentum remains strong but is becoming increasingly stretched. Support is initially found at the 20-period SMA (1.1585) and the 100-day SMA (1.1575), with the lower Bollinger band (1.1462) acting as a deeper demand zone if a broader correction occurs. In the opposite direction, the immediate resistance lies at the Bollinger upper band (1.1715), and a sustained break above this level could trigger further bullish momentum, whereas failing to clear it might result in consolidation around the moving-average supports.",
  "summary": "The EUR/USD pair edges higher to around 1.1655 during the early Asian session on Thursday. A hawkish stance of the European Central Bank (ECB) provides some support to the Euro (EUR) against the US Dollar (USD).",
  "key_points": [
    "Euro strengthens to 1.1655 against USD",
    "ECB maintains hawkish stance, expects rate hikes",
    "Fed's core PCE index steady at 3.3% YoY"
  ],
  "editors_take": "The European Central Bank's hawkish stance, indicating further interest rate hikes to curb inflation, continues to bolster the Euro's sentiment and supports its recent rally against the US Dollar.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}