EUR/USD holds below 1.1700 ahead of ECB decision – BBH

FXStreet Insights Team FXStreet

The Euro (EUR) is trading heavy under 1.1700 as markets await the ECB’s policy decision, where rates are expected to remain unchanged at 2.00%. With inflation near target and growth broadly in line with forecasts, investors will look to updated projections and Christine Lagarde’s remarks for clues on the policy outlook, BBH FX analysts report.

ECB seen steady at 2.00%, focus shifts to Lagarde’s guidance

"EUR/USD is trading heavy under 1.1700. The ECB is widely expected to keep the policy rate unchanged at 2.00% for a third consecutive meeting (1:15pm London, 8:15am New York)."

"Eurozone inflation remains close to the 2% target and real GDP growth is tracking the ECB’s 2025 forecast of 0.9%. Real GDP rose 0.6% q/q and 0.1% q/q in Q1 and Q2, respectively. The ECB’s updated macroeconomic projections and President Christine Lagarde’s post-meeting press conference will be key for policy insights."

"The swaps market price-in 75% odds of a 25bps cut in the next 12 months. In our view, the ECB is well-positioned to keep rates steady for an extended period while the Fed cuts rates. Bottom line: relative monetary policy stance underpins the EUR/USD uptrend."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD: US Dollar comeback in the makes?

The US Dollar stands victorious at the end of another week, with the EUR/USD pair trading near a four-week low of 1.1742, while the USD retains its strength despite some discouraging American data released at the end of the week. The pair edged higher on Friday, after the United States Supreme Court ruled against President Donald Trump's tariffs, although the advance is not enough to change the latest USD flow.

GBP/USD braces for more pain, as 200-day SMA tested

GBP/USD broke the previous week’s consolidation to the downside, as sellers returned with pomp, smashing the major back toward the levels last seen in late January. The pair tested bids below the 1.3450 barrier as the US Dollar strength largely played out throughout the week, while the Pound Sterling stepped back on expectations of divergent monetary policy outlooks between the Bank of England and the US Federal Reserve.

Gold rises to near $5,100 as Trump’s tariffs boost haven demand, US-Iran talks eyed

Gold price edges higher to near $5,095 during the early Asian session on Monday. The precious metal extends the rally amid US President Donald Trump’s tariff threats and uncertainty, boosting safe-haven flows.

Week ahead: Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness. Yen and aussie diverge; both pound and euro could recoup their losses.

Broadening drivers of growth: Unpacking GDP and looking ahead

This week’s data delivered a familiar theme with an important twist. The U.S. economy continues to be shaped by powerful forces in high-tech and AI-related investment, but recent releases suggest the growth story may finally be broadening. At the same time, trade flows are moving in a less supportive direction, reminding us that not all parts of the economy are pulling in sync.

Ripple bulls defend key support amid waning retail demand and ETF inflows

XRP ticks up above $1.40 support, but waning retail demand suggests caution. XRP attracts $4 million in spot ETF inflows on Thursday, signaling renewed institutional investor interest.