The Euro experienced slight losses against the US Dollar as the latest US Core Consumer Price Index (CPI) report reinforced expectations of a 25 bps Fed rate cut. Meanwhile, the European Central Bank (ECB) is expected to cut rates by 25 bps amidst slowing EU economic data and Germany’s inflation drop to 1.9% YoY.
The EUR/USD pair traded at 1.1014, down 0.04%, following the US inflation report showing a 0.3% MoM increase in the Core CPI. With the ECB’s rate decision looming, traders are anticipating a more complex monetary policy outlook post-September.
Key Factors Impacting EUR/USD Movement
Wall Street closed positively, with the US Dollar strengthening on the back of higher Core CPI in August. The EUR/USD decline was limited by the upcoming ECB decision, with traders adjusting their bets for a 25 bps Fed rate cut next week.
Germany’s inflation data and PMI readings signal an economic slowdown in the EU, leading to expectations of a rate cut by the ECB. However, challenges may arise as some inflation components remain resilient.
Looking ahead, the US will release the latest Initial Jobless Claims report and the Producer Price Index (PPI), adding further volatility to the EUR/USD pair.
Technical Analysis and Price Forecast
The EUR/USD is currently neutral but above the 1.1000 level, indicating a bearish shift despite upward momentum in the Relative Strength Index (RSI). A move above 1.1054 could push the pair towards 1.1100, while a drop below 1.1000 may find support at the 50-day moving average at 1.0967.
Euro Price Today
The Euro showed strength against the US Dollar today, with minor fluctuations against other major currencies. The EUR/USD pair remained the strongest performer, reflecting market optimism towards the Euro.
In summary, the EUR/USD outlook is influenced by Fed rate cut expectations and the ECB’s upcoming decision. Traders should monitor key economic indicators and central bank actions to make informed investment decisions.