EUR/USD remains near 1.1600 as ECB holds steady, Fed easing eyed

• EUR/USD may regain its ground as the ECB is expected to hold interest rates steady for the time being.
• The US Dollar gains as the US House is set to vote on the bill to end the government shutdown.
• Weaker ADP employment data have strengthened expectations for Fed policy easing.

EUR/USD remains steady after five days of gains, trading around 1.1580 during the Asian hours on Wednesday. The pair may continue its winning streak as the Euro (EUR) could further gain amid a cautious tone surrounding the European Central Bank (ECB) policy outlook. The ECB is expected to keep interest rates unchanged for now, backed by steady economic performance and inflation near target.

Traders will likely observe the upcoming German inflation data, including Consumer Price Index (CPI) and Harmonized Index of Consumer Prices (HICP) data for October, to gain further impetus on the European Central Bank's (ECB) policy outlook.

The EUR/USD pair maintains its position as the US Dollar (USD) holds gains due to optimism over the ongoing process to reopen the United States (US) government. The US Senate completed its job and passed the bill that would end the government shutdown. The House is set to vote on the bill on Wednesday, sending it to US President Donald Trump for signature. That would reopen the government, sending paychecks and unleashing economic data releases.

However, the Greenback faced challenges as weaker-than-expected Automatic Data Processing (ADP), on Tuesday, employment data reinforced expectations of policy easing. Private employers shed an average of 11,250 jobs per week on average in the four weeks ended October 25, compared with 14,250 previously. The CME FedWatch Tool shows markets pricing in a 68% chance of a 25-basis-point rate cut in December.