No major events expected today.

The pair opens the session near one point sixteen fifteen as the market prepares for the European Central Bank meeting. Expectations of an interest rate hike are supporting the euro, as investors factor in the need for the central bank to respond to rising inflation risks. The probability of more hawkish guidance regarding future policy is capping selling interest in the European currency.

United States employment data reinforced expectations of a potential Federal Reserve rate hike, yet the dollar failed to sustain a lasting rally. Attention is shifting to upcoming inflation data from the United States, without which the market lacks definitive confirmation of the central bank’s September decision. Additional pressure on the dollar stems from concerns over rising national debt and economic policy uncertainty.

Consequently, the short-term advantage remains with the euro. The anticipated tightening by the European Central Bank provides its own supporting pillar, whereas heightened expectations for the Federal Reserve are already partially priced in and have yet to give the dollar a strong push forward. Should demand for the American currency remain muted, EUR/USD could continue its recovery.

Recommendations: BUY 1.1615, SL 1.1585, TP 1.1690.