EUR/USD news for September 12, 2026
The euro was little changed above 1.1600 after the ECB delivered a hawkish rate hike, with market focus turning to upcoming US CPI data. Higher-than-expected core US inflation has bolstered expectations for Fed tightening, a factor cited in dollar gains against the euro. The ECB's signal of more hikes to follow contrasts with the Fed's tightening path, leaving EUR/USD sensitive to relative policy expectations.
How the day unfolded
The euro is reacting to the European Central Bank's hawkish rate hike and signals of further tightening in September, though the currency has held above 1.1600. Traders are bracing for US CPI data, a key input for the pair. Meanwhile, the pair has nearly recovered from a recent selloff tied to Kevin Warsh, leaving market attention on monetary policy divergence.
The euro is reacting to European Central Bank policy decisions, with markets expecting a rate hike and additional increases in September amid rising inflation and energy risks. Attention is also on forthcoming US CPI data, which could affect the currency pair's valuation. The euro has remained above 1.1600 despite the ECB's move and has nearly reversed a selloff tied to Kevin Warsh.
The euro has been holding just above 1.1600 following the European Central Bank’s latest rate hike, while traders await US CPI data for the next catalyst. The ECB is set to resume interest rate hikes in September as inflation and energy risks rise, keeping market attention on the central bank’s policy path. EUR/USD had almost erased a Warsh-driven selloff ahead of the ECB decision, leaving the pair sensitive to rate decisions and upcoming inflation releases.
EUR/USD is being driven by the ECB policy decision and expectations of a 25 basis point hike, with one review calling it a “no-brainer” and more to follow, while yield support was noted into the decision. The pair flatlined above 1.1600 despite the ECB hawkish hike, and traders are now bracing for US CPI data. A Warsh-driven selloff was almost erased ahead of the ECB decision, and technical commentary flagged a minor uptrend intact ahead of the meeting.
The European Central Bank delivered a hawkish rate hike, but the euro remained flat above 1.1600 as traders turned their attention to upcoming US inflation data. A hotter-than-expected US Producer Price Index boosted the dollar, weighing on EUR/USD, while markets await the US Consumer Price Index for further clarity. ECB President Lagarde's rejection of a far-left debt-cancellation plan also highlighted fiscal policy debates within the eurozone.
The European Central Bank delivered a hawkish rate hike and signaled more tightening may follow, but the euro remained nearly flat above 1.1600 against the dollar. At the same time, recent US inflation readings, including core CPI and PPI, came in higher than expected, reinforcing expectations that the Federal Reserve will continue tightening, which has supported the dollar. Market participants are now awaiting the upcoming US CPI release for further clarity on the interest rate outlook.
The euro held steady above 1.1600 despite a hawkish ECB rate hike, with traders awaiting US CPI data. Recent strong US inflation readings, including a hot PPI, have increased expectations for Fed tightening, supporting the dollar.
Headlines (17)
- European Central Bank to resume interest rate hikes in September as inflation, energy risks risewww.fxstreet.com · Sep 10, 08:00 UTC
- EUR/USD almost erased Warsh-driven selloff ahead of the ECB decision. What to watch next?investinglive.com · Sep 10, 10:32 UTC
- Chart alert: EUR/USD minor uptrend intact ahead of ECB as markets brace for 25bp rate hikewww.marketpulse.com · Sep 10, 10:43 UTC
- Euro: Yield support into ECB decision – MUFGwww.fxstreet.com · Sep 10, 11:10 UTC
- Kickstart the NA trading day with a technical look at the EURUSD, USDJPY and GBPUSD. What levels are key.investinglive.com · Sep 10, 12:12 UTC
- Monetary policy decisionswww.ecb.europa.eu · Sep 10, 12:16 UTC
- Euro weakens despite ECB rate hike as US PPI comes in hotwww.fxstreet.com · Sep 10, 12:56 UTC
- Lagarde rejects far-left Mélenchon’s debt-cancellation planwww.politico.eu · Sep 10, 15:31 UTC
- Forex Today: US Dollar rebounds on hot PPI ahead of US CPIwww.fxstreet.com · Sep 10, 19:57 UTC
- Euro flatlines above 1.1600 despite ECB hawkish hike, traders brace for US CPI datawww.fxstreet.com · Sep 11, 00:43 UTC
- ECB Review: A “No-Brainer” Hike and More to Followwww.actionforex.com · Sep 11, 01:22 UTC
- Dollar Gains Ground as Fed Tightening Expectations Rise. Forecast as of 11.09.26www.litefinance.org · Sep 11, 06:24 UTC
- EUR/USD Price Forecast: Likely find direction after US CPI datawww.fxstreet.com · Sep 11, 08:00 UTC
- Sticky US inflation justifies a Fed rate hikethink.ing.com · Sep 11, 13:34 UTC
- Higher than expected core CPI gives Fed enough to tightenwww.ft.com · Sep 11, 14:44 UTC
- EUR/USD Weekly Forecast: To hike or not to hike? Kevin Warsh between a rock and a hard placewww.fxstreet.com · Sep 11, 14:59 UTC
- The Fed Is Poised to Raise Interest Rates for the First Time in Yearswww.wsj.com · Sep 11, 21:20 UTC
Scheduled events
As of 21:41 UTC
- 2026-09-12 — ECB President Lagarde Speaks · EUR
- 2026-09-14 — French Final CPI m/m · EUR
- 2026-09-14 — German Buba Monthly Report · EUR
- 2026-09-14 — German WPI m/m · EUR
- 2026-09-15 — German WPI m/m · forecast 0.1% · EUR
- 2026-09-15 — French Final CPI m/m · forecast 0.7% · EUR
- 2026-09-15 — Italian Trade Balance · forecast 4.77B · EUR
- 2026-09-15 — ZEW Economic Sentiment · forecast 39.9 · EUR
Not investment advice. For informational purposes only.