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EUR/USD news for August 26, 2026

EUR/USD is being driven by contrasting central bank signals, with ECB's Schnabel backing further tightening while the US dollar firms on higher yields ahead of the Jackson Hole symposium. Traders are also positioning for the upcoming US Core PCE inflation reading, which could influence Fed policy expectations. The broader risk environment, including tariff concerns and a chip selloff, is adding to FX market caution.

How the day unfolded

  1. The euro is holding near its highest levels since May as the dollar remains under pressure from the Treasury's expanded bond buyback program. Traders are now focused on the upcoming US Core PCE inflation report, the Fed's preferred gauge, which will offer fresh clues on the policy outlook. Meanwhile, a stronger-than-expected German Ifo business climate reading has added support for the single currency.

  2. The euro is supported by a weaker US dollar, which slipped to its lowest since May after the Treasury announced it would double bond buybacks. Meanwhile, markets are awaiting the US core PCE price index, the Fed's preferred inflation gauge, due later today, which could influence rate expectations. On the euro side, a stronger German Ifo business climate contrasts with political uncertainty in France.

  3. The U.S. dollar slipped to its lowest level since May, with Treasury bond buybacks in focus, as traders await the latest Core PCE inflation data. In the eurozone, ECB official Schnabel stressed the need to act early on inflation, while Germany's Ifo business climate improved, offering underlying support for the euro.

  4. EUR/USD is underpinned by hawkish signals from ECB's Schnabel, who sees inflation above 2% for an extended period and supports more tightening, while the dollar has slipped to its lowest since May amid Treasury bond buybacks. Attention now turns to the U.S. core PCE price index for July, a key inflation gauge for the Fed. Separately, political risk in France, highlighted by Mélenchon's debt bomb comment in the presidential debate, remains a factor for the euro.

  5. ECB's Schnabel signaled that inflation will stay above 2% for an extended period and backed further tightening, which underpins the euro. At the same time, the dollar slipped to its lowest since May as the Treasury doubled its bond buyback program, adding support for EUR/USD. Market attention now turns to the upcoming U.S. PCE inflation data, which could drive the next move.

  6. EUR/USD is being supported by hawkish comments from ECB's Isabel Schnabel, who sees inflation staying above 2% and backs further tightening, which strengthens the euro. At the same time, the dollar is weakening after the Treasury's announcement of expanded bond buybacks, pushing the currency to its lowest since May. Traders are also watching upcoming US core PCE data, a key Fed inflation gauge, which could influence the next moves for the pair.

  7. EUR/USD is being supported by hawkish signals from the ECB, after officials like Schnabel backed more tightening on expectations that inflation will stay above 2%. Meanwhile, the dollar has slipped to its lowest since May as the Treasury doubles bond buybacks, but traders are now focused on the upcoming U.S. core PCE price index for further direction.

  8. EUR/USD is being driven by a hawkish ECB, after Schnabel backed more tightening and projected above-target inflation, which supports the euro. Meanwhile, the dollar has firmed as Treasury yields rise and investors position ahead of Jackson Hole and the US core PCE print, creating a check on the pair's rally.

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As of 23:46 UTC

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Not investment advice. For informational purposes only.