EUR/USD Holds Near 1.1550 as ECB Decision and U.S. PPI Take Centre Stage

EUR/USD is holding near 1.1550 ahead of the ECB rate decision, with markets expecting a 25 basis point hike to 2.40%. Investors will closely watch the ECB's updated forecasts and President Lagarde's comments for clues on future rate moves. While inflation remains well above target, slowing economic growth has left the ECB facing a difficult balancing act. Meanwhile, attention is also on today's U.S. PPI data, where a stronger-than-expected reading could support the U.S. dollar by reinforcing expectations for higher interest rates.

Overall, the near-term outlook remains cautious. A hawkish ECB could provide support for the euro, but persistent inflation concerns in the U.S. and expectations of higher rates could continue to favour the dollar.

Technically, EUR/USD remains under pressure after breaking below 1.1600 and the 200-day moving average. The key support remains at 1.1500, with further downside targets at 1.1410 if this level breaks. On the upside, a move above 1.1600 would improve the outlook and could open the door toward 1.1670.

EUR/USD Daily Chart