EUR/USD remains stable in the North American session on Thursday, with the Dollar showing slight gains of over 0.05% as market participants anticipate the release of September’s US inflation data. Currently, the pair is trading at 1.1617, having reached a low of 1.1585.
The EUR/USD pair is currently trading at 1.1617, showing a slight increase after rebounding from a low of 1.1585. The dollar experiences a slight increase of 0.05% as market participants prepare for the upcoming CPI report on Friday, with both headline and core inflation anticipated to exceed 3%. US Existing Home Sales increased by 1.5% month-over-month to 4.06 million, surpassing projections.
> Price action remains subdued in the context of limited data and a careful outlook as we approach the important CPI release : An underwhelming economic calendar on both sides of the Atlantic saw the release of tier 2 data, with Existing Home Sales in the US for September exceeding expectations in month-over-month figures. The White House has confirmed that US President Donald Trump is scheduled to meet with his Chinese counterpart Xi Jinping on Thursday in South Korea. Prior to this, he will hold discussions with the new Prime Minister of Japan, Takaichi, on Tuesday, and subsequently meet with the President of South Korea on Wednesday. The EUR/USD pair overlooked much of the data as traders focused on US trade rhetoric regarding China, coinciding with the US government shutdown entering its twenty-third day. Traders are now anticipating the release of the US Consumer Price Index data for September, which is projected to indicate that both headline and core CPI have surged above 3%. In Europe, Consumer Confidence in October has shown an improvement, rising to -14.2 from the prior figure of -14.9.
Latest FX Rate Trends : EUR/USD expected to stay subdued, anticipating US CPI data
- The US Dollar Index, which measures the dollar’s value against a selection of competing currencies, has increased by 0.06% to 98.94, limiting the upward movement of the EUR/USD pair.
- Market participants are closely monitoring the upcoming release of US CPI in anticipation of next week’s Federal Reserve monetary policy decision. Headline and core CPI are projected to register a modest increase at 3.1% YoY. While the Federal Reserve’s policy-setting emphasis has transitioned from inflation to the employment sector, the figures will be monitored with great attention.
- The US central bank is anticipated to reduce rates by 25 basis points, bringing them to the 3.75% – 4% range. Traders are already factoring in a further 0.25% decrease for the December meeting.
- In recent statements, Kazaks remarked, “it may well be the case that the next rate move could as easily be a hike as a cut.” This perspective stands in contrast to Villeroy’s assertion that a cut is more likely than a hike, while Kocher perceives an equal probability for both outcomes.
- In the realm of trade developments, it has been reported that French President Macron is urging the EU to activate its most potent trade mechanism, the Anti-coercion instrument, in response to China.