The dollar edged higher against the euro on August 27, 2026, keeping EUR/USD confined to a 22-pip range. Minutes from the ECB's latest meeting showed unanimous support for holding rates steady, while a Kansas City Fed official said inflation remains stubborn and sticky.
The euro slipped against the dollar in early North American trading on August 27, 2026, with the greenback trading higher against the EUR, JPY, GBP and CHF while easing against the AUD and NZD. EUR/USD stayed inside a 22-pip trading range for the session, one of the tightest among the majors alongside USD/CHF's 15 pips.
ECB minutes show unanimous hold, upside inflation risk
Minutes from the European Central Bank's meeting showed unanimous support for keeping interest rates unchanged, with policymakers judging a pause appropriate given uncertainty over the energy shock's effect on prices. Members agreed inflation risks remain tilted to the upside, even as underlying inflation stays contained and long-term expectations remain anchored. The ECB will reassess its outlook in September once it has updated projections on inflation, wages and growth.
No decision was pre-committed, but members generally agreed another rate hike would likely be necessary unless the inflation outlook improves significantly. The eurozone economy has also held up better than expected despite the Middle East conflict, higher energy prices and elevated uncertainty.
Radev calls October and December meetings live
ECB Governing Council member Dimitar Radev said the October and December meetings remain open for additional tightening, warning that waiting for clear evidence of second-round inflation effects could leave the ECB behind the curve. He described a 2.5% policy rate as roughly neutral but said future decisions will depend on incoming data, updated projections and the impact of tighter financial conditions. His tone leaned hawkish, though he stopped short of committing to further increases beyond September.
Fed's Schmid keeps inflation-focused stance
On the US side, Kansas City Fed President Jeffrey Schmid maintained a cautious, inflation-focused stance ahead of Kevin Warsh's scheduled appearance at the Jackson Hole summit. Schmid said inflation remains stubborn and sticky and that the Fed still needs to return it to its 2% target, warning that the energy shock is beginning to filter into the broader economy. He added that the midterm elections would not affect the Fed's October decision and said he probably would have supported a rate hike at the July meeting.
Treasury yields firmed modestly across the curve, with the 10-year yield at 4.6663%, up 0.2 basis points, as the Treasury prepares to sell 7-year notes at 1 PM after the 2- and 5-year auctions drew above-average demand.
Source: Investinglive RSS Breaking News Feed
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