• EUR/USD trades in a tight range around 1.0950 with ECB policy meeting in focus.
• The ECB may not announce subsequent rate cuts.
• Firm Fed rate-cut prospects have weighed on the US Dollar.

EUR/USD turns sideways in Thursday’s European session after rallying to a fresh four-month high at around 1.0950 on Wednesday. The major currency pair is expected to remain quiet as investors shift to the sidelines ahead of the European Central Bank (ECB) policy meeting, which will be announced at 12:15 GMT.

The ECB is expected to leave its key rates unchanged this time as officials have been refraining from committing a pre-defined rate-cut path amid concerns over sticky inflation in the service sector, which could reverse the disinflation process. Therefore, investors will look for cues about when the ECB cuts interest rates further.