EUR/USD hovers around 1.0800 ahead of Eurozone Industrial Production, Eurogroup Meeting
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- EUR/USD remains stable as Eurozone Industrial Production is anticipated to decline on a monthly basis.
- The US Dollar advances following a hawkish hold from the Fed on Wednesday.
- Fed Chair Jerome Powell stated, “We don't see ourselves as having the confidence that would warrant policy loosening at this time.”
EUR/USD remains stable following the trimming of losses registered in the previous session. The EUR/USD pair trades around 1.0810 during the Asian hours on Thursday. Eurozone Industrial Production figures for April are scheduled for Thursday, with median market forecasts anticipating a decline to 0.2% month-over-month, down from the previous 0.6%.
Traders will likely observe the Eurogroup Meeting and several speeches from European Central Bank (ECB) policymakers on Thursday and Friday.
On the other side, the US Dollar (USD) advances following a hawkish hold from the US Federal Reserve (Fed). The Federal Open Market Committee (FOMC) left its benchmark lending rate in the range of 5.25%–5.50% for the seventh consecutive time in its policy meeting on Wednesday, as widely anticipated.
In a press conference following the Fed's decision, Fed Chair Jerome Powell noted that the restrictive stance on monetary policy is having the expected effect on inflation. "So far this year, we have not gained greater confidence on inflation to warrant a rate cut." "We will need to see more positive data to bolster confidence in inflation control. We don't see ourselves as having the confidence that would warrant policy loosening at this time," Powell added.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, edges higher to near 104.80, possibly supported by the rebound in the US Treasury yields. 2-year and 10-year yields on US Treasury bonds stand at 4.76% and 4.31%, respectively, by the press time.
Investors await the US weekly Initial Jobless Claims and Producer Prices Index (PPI) on Thursday to gain further impetus on economic conditions in the United States (US).
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