{
  "id": 5210532,
  "title": "Euro steadies below 1.1600 as hawkish Fed rhetoric limits gains",
  "url": "https://urgent.news/2026/09/03/euro-steadies-below-1-1600-as-hawkish-fed-rhetoric-limits-gains",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-03T00:51:12.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/euro-steadies-below-11600-as-hawkish-fed-rhetoric-limits-gains-202609030051"
  },
  "original_language": "en",
  "account": "The EUR/USD currency pair maintained a steady level near 1.1590 during the early Asian trading session on Thursday. The pair's potential upside may be constrained by the Federal Reserve's hawkish outlook and the ongoing tension in the Middle East. The US August ISM Services Purchasing Managers Index (PMI) data will be released on Thursday, while traders will be monitoring the US Nonfarm Payrolls (NFP) figures on Friday. Fed Chair Kevin Warsh previously indicated that policymakers might have to raise interest rates again if inflation does not move significantly towards the 2% target. His cautious remarks could bolster the US Dollar and act as a hindrance for the EUR/USD pair. The probability of a September Federal Reserve rate hike has increased to 62.3%, up from under 40% prior to his speech, as per the CME FedWatch tool. US President Donald Trump announced on Wednesday that strikes against Iran would likely be short-lived, emphasizing that the US controls the Strait of Hormuz. Meanwhile, Supreme National Security Council Secretary Mohsen Rezaei suggested that Tehran will unveil its \"new strategy\" for war soon. Escalating tensions in the Middle East could stimulate demand for safe-haven assets, potentially supporting the US Dollar. In Europe, ECB policymaker Gabriel Makhlouf cautioned that the central bank should not hesitate to implement further interest rate hikes if inflation \"starts moving in the wrong direction.\" ECB Governing Council member Joachim Nagel stated on Wednesday that markets are convinced of a more than 95% chance of a September rate hike. Scotiabank analysts point out that the latest decline in the Euro coincides with a rebound in energy markets, noting that the worsening situation seems to have coincided with the recent surge in oil prices, raising concerns about the Eurozone's terms of trade as a major energy importer. The latest rally in commodity prices appears to be undermining support for the Euro, even as yield spreads remain relatively favorable, adding to the market's bearish sentiment towards the single currency. On the daily chart, the EUR/USD pair is positioned around the day's opening level, holding above the 100-day simple moving average (SMA), indicating a slight buying interest. However, it is still constrained by the Bollinger Bands, suggesting that the pair could face resistance at the middle band near 1.1605 and stronger support at the upper band near 1.1708. On the downside, the immediate support level is provided by the 100-day SMA at 1.1565, with a deeper support zone at the lower Bollinger band around 1.1500, where buyers may step in if the pair continues its downward trend.",
  "summary": "The EUR/USD pair holds steady near 1.1590 during the early Asian session on Thursday. The potential upside for the major pair might be limited amid hawkish Federal Reserve (Fed) expectations and escalating conflict in the Middle East.",
  "key_points": [
    "Euro steady near 1.1590 amid Fed's hawkish stance",
    "US August ISM PMI and NFP data on Thursday and Friday",
    "September rate hike probability at 62.3% per CME FedWatch"
  ],
  "editors_take": null,
  "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."
}