- EUR/USD climbs on broad-market Greenback selloff.
- US CPI inflation eases further, sparking Fed rate cut hopes.
- Bets for September rate cut firm up.
EUR/USD climbed on Wednesday in one of the pair’s single-best days of 2024, climbing towards 1.0900 and on pace to etch in a fourth consecutive gain week. Broad-market selling pressure deflated the US Dollar (USD) after risk appetite roared to the forefront after US Consumer Price Index (CPI) inflation eased more than investors expected.
US CPI inflation eased to 0.3% MoM, below median market forecasts of a steady 0.4% print and triggering a broad-market risk rally as sentiment pinned further into hope for an approaching rate cut from the Federal Reserve (Fed) in September. According to the CME’s FedWatch Tool, rate markets are pricing in over 70% odds of at least a quarter-point rate trim when the Fed meets in September.
European final Gross Domestic Product (GDP) figures broadly came in as expected for the first quarter, with Q1 GDP printing at 0.3% QoQ, which is in line with forecasts and the previous quarter’s growth. The rest of the week is strictly mid-tier data releases on both sides of the Atlantic, leaving markets to wistfully look ahead to whether or not the Fed will cut interest rates late in the third quarter.
EUR/USD technical outlook
EUR/USD is taking a bullish run at the 1.0900 handle as the pair extends a bullish bounce from the 200-hour Exponential Moving Average (EMA) from 1.0730. The 200-hour EMA is rising above 1.0780, but intraday bidding has dragged EUR/USD well above technical indicators, and the pair is up over 2.7% from April’s swing low near 1.0600.
Daily candles pierced the 200-day EMA at 1.0798 on Wednesday, but a descending pattern of lower highs threatens a clean extension with a near-term technical ceiling priced in from 1.0950.
EUR/USD hourly chart
EUR/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Next on the downside comes 0.6500
Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.
EUR/USD pierces 1.06, finds lowest bids in a year
EUR/USD trimmed further into low the side on Tuesday, shedding another third of a percent. Fiber briefly tested below 1.0600 during the day’s market session, and the pair is poised for further losses after a rapid seven-week decline from multi-month highs set just above 1.1200 in September.
Gold struggles to retain the $2,600 mark
Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.
Ripple could rally 50% following renewed investor interest
Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. XRP could rally nearly 50% if it sustains a firm close above the neckline resistance of an inverted head and shoulders pattern.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.