EUR volatility expected as ECB's Lane, de Guindos speak on policy

EUR/USD trades cautiously at 1.0835 ahead of scheduled speeches by ECB Chief Economist Philip Lane and Vice President Luis de Guindos on monetary policy matters. The euro has been under pressure recently, down 0.5% this week against the dollar, as markets price in potential ECB rate cuts amid slowing Eurozone growth. Lane's comments will be closely watched for insights into the ECB's inflation outlook and potential policy trajectory, particularly after recent data showed Eurozone inflation at 2.4%, approaching the 2% target. Market positioning suggests traders are anticipating dovish signals, with EUR/USD options showing increased demand for downside protection. Technical levels show immediate support at 1.0820 and resistance at 1.0860. Any hawkish surprises from the ECB officials could trigger a short squeeze in EUR/USD, while confirmation of an accommodative stance may accelerate the pair's decline toward 1.0800 psychological support.