EUR/USD Holds 1.1625 as ECB Signals Pause, Trade Optimism Rises

EUR/USD maintains stability around 1.1625 following European Central Bank officials' comments suggesting no immediate need for further monetary tightening. The single currency found support as ECB policymakers indicated current interest rate levels may be sufficient to combat inflation, marking a potential shift from the aggressive hiking cycle. Markets are closely monitoring upcoming German IFO Business Climate data, expected to provide insights into Europe's largest economy amid global trade uncertainties. US inflation indicators scheduled for release this week could provide fresh directional cues, with traders anticipating CPI data to show moderating price pressures. Technical analysis shows immediate resistance at 1.1650, while support has consolidated at 1.1600. The pair's ability to sustain above the 1.1600 psychological level suggests underlying bullish sentiment, though a break below could trigger a retest of 1.1550. Trade optimism between major economies has additionally supported risk appetite, benefiting the euro against the safe-haven dollar.