EUR/USD faces pressure as ECB rate cut delayed to September

EUR/USD is trading under pressure near 1.0850 as UBS revises its ECB rate cut forecast from July to September, aligning with market expectations. The shift comes amid ongoing US-EU trade uncertainties, with markets pricing in a 97% probability of no change at next week's ECB meeting. Traders have significantly scaled back rate cut expectations, now pricing only 20 basis points of easing by year-end, down from earlier projections. The euro's resilience reflects reduced dovish bets on ECB policy, though trade tensions remain a key risk factor. Technical indicators suggest EUR/USD faces resistance at 1.0900, with support established at 1.0820. The delayed rate cut timeline could provide near-term support for the euro, but traders should monitor upcoming ECB communications and US-EU trade developments for directional cues.