The EUR/USD pair is trading near 1.1000, holding more than a three-week low despite the European Central Bank’s (ECB) expected rate cut of 25 basis points (bps). The ECB’s decision marks the second interest rate cut in its current policy easing cycle.

ECB Rate Cut and Outlook

The ECB cut its key borrowing rates due to declining Eurozone price pressures and growing economic risks. While the ECB is expected to maintain a dovish stance, investors will closely watch ECB President Christine Lagarde’s press conference for guidance on future interest rates.

US Dollar Strengthens

The US Dollar (USD) has gained strength, supported by the sticky US core inflation data and reduced expectations for a more aggressive rate cut by the Federal Reserve (Fed). The CME Fedwatch tool now shows a lower probability of a 50 basis points (bps) rate cut in September.

US Economic Data

Investors will focus on US Producer Price Index (PPI) data and Initial Jobless Claims data, which will be released later today. The jobless claims data is particularly significant as recent Fed comments suggest a growing concern about reviving job growth.

EUR/USD Technical Analysis

The EUR/USD pair is trading near a key resistance level of 1.1000. A break below this level could lead to further downside, with potential support at 1.0950. On the upside, the pair faces resistance at 1.1155 and 1.1200.