EUR/USD saw a surge on Thursday, climbing above 1.1050 as the Greenback weakened in response to US Producer Price Index (PPI) data. Despite the lack of significant movement in the PPI figures, market sentiment remains focused on the Federal Reserve (Fed) and the anticipation of rate cuts in the upcoming meeting.
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European data is not expected to have much impact on Friday, with Euro traders taking a break after the ECB’s rate cut announcement. Meanwhile, the US will be looking at the University of Michigan’s Consumer Sentiment Index for insights into the economy before the week closes.
US PPI data for August showed a slight increase, with core PPI also rising. While the short-term numbers were in line with expectations, the annualized figures showed a more positive outlook for investors. Initial Jobless Claims also rose slightly, indicating a stable but tepid employment market.
The market is now eagerly awaiting the Fed’s decision on September 18, with expectations high for a 25 bps rate cut. The odds of a cut are over 80%, with predictions of four cuts in total by the end of the year.
EUR/USD Price Forecast
Thursday’s rally signals a comeback for EUR/USD bulls, with the pair bouncing back from recent lows. Despite facing resistance at the 1.1200 level, the pair has managed to stay above the 50-day Exponential Moving Average (EMA).
EUR/USD Daily Chart
Euro FAQs
The Euro is the currency of the Eurozone, accounting for a large portion of global foreign exchange transactions. The European Central Bank (ECB) plays a crucial role in managing the Eurozone economy, with its decisions impacting the value of the Euro. Key indicators such as inflation data, economic releases, and trade balance figures can influence the Euro’s performance in the forex market.