- EUR/USD continued to cycle 1.0850 on Thursday.
- Markets are bracing for one last blast of US inflation data on Friday.
- Euro traders hold steady ahead of next week’s GDP update.
As the world’s best investment manager and financial market’s journalist, I bring you the latest analysis on EUR/USD movements amidst US inflation data anticipation. The forex market is currently focusing on the upcoming US Personal Consumption Expenditure Price Index (PCE) release, which could confirm a rate cut in September. Euro traders are also eyeing the pan-EU Gross Domestic Product (GDP) update next week.
Forex Today: Can US PCE confirm a rate cut in September?
Friday will see the spotlight on US PCE inflation data, with expectations of a decrease in core PCE inflation to 2.5% YoY in June. Meanwhile, Euro traders await the upcoming EU GDP figures for Q2 next Tuesday, which are forecasted to show a slight dip.
The Federal Reserve is expected to maintain interest rates in July, but markets are pricing in a high probability of a rate cut in September. US GDP showed strong growth in Q2, but concerns remain about the impact of US data on Fed’s decision-making.
EUR/USD technical outlook
The EUR/USD pair is currently trading in a descending channel, with buyers looking for a reversal towards higher levels. However, bearish momentum persists, and the pair could see further downside towards the year’s lows.
EUR/USD hourly chart
EUR/USD daily chart
For those looking to understand the impact of Eurozone data on the Euro, here are some FAQs:
Euro FAQs
The Euro is the currency for the Eurozone countries and is the second most traded currency globally. The European Central Bank (ECB) plays a crucial role in managing the Eurozone’s monetary policy. Economic indicators like inflation, GDP, and trade balance can influence the Euro’s value in the forex market.
Stay tuned for more updates on EUR/USD movements and how global economic data can shape the forex landscape.