⚡ EUR/USD Price Forecast: Sticks to gains above 1.1600 as bulls await ECB, US PPI

**BREAKING: EUR/USD Holds Above 1.1600 Ahead of Key Risk Events**

The EUR/USD currency pair is attracting buying interest during Thursday’s Asian trading session, maintaining its position above the 1.1600 level despite lacking strong momentum. Market participants are showing clear signs of caution as they await two major catalysts that could drive significant volatility later today.

Traders and brokers are holding positions ahead of the European Central Bank policy meeting and the release of US Producer Price Index data, both scheduled for Thursday. The cautious positioning reflects uncertainty about potential policy signals from the ECB and inflation readings from the PPI report, which could materially impact euro-dollar direction.

The pair’s ability to attract dip-buyers demonstrates underlying support, but the absence of follow-through buying suggests limited conviction until the key risk events pass. Currency desks are advising clients to expect heightened volatility once these catalysts hit the market.

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FXnCO Insight

** Position sizing should be reduced and stop-losses tightened ahead of the ECB decision and US PPI release, as breakouts in either direction could be swift once directional clarity emerges.

Source: FXStreet