The EUR/USD pair traded 0.17% higher around the 1.1550 level during Friday’s European session, supported by growing expectations of an ECB interest rate hike in September, according to FX Street.
ING FX Strategist Francesco Pesole noted that the euro appears modestly undervalued, with a short-term fair value range estimated between 1.160 and 1.1650 based on swap spreads. Meanwhile, United Overseas Bank's Quek Ser Leang and Lee Sue Ann observed that after a brief spike, EUR/USD is consolidating within an intraday range of 1.1515 to 1.1550 as market tone remains firm.
For Japanese investors, this movement in EUR/USD highlights the ongoing impact of European monetary policy expectations on FX markets, which can influence currency pair volatility and trading strategies in the Asia-Pacific region.