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Mixed US data depresses EUR/USD - hopes for rate cuts dampened.
EUR/USD remains at 1.0730 after a turbulent Thursday with mixed US data. Find out how the numbers impact the market and what investors can expect.
Mixed US data depresses EUR/USD - hopes for rate cuts dampened.
The EUR/USD rate fell slightly on Thursday after a turbulent day of trading. Mixed US data weighed on markets, with US gross domestic product (GDP) contracting more than expected in the first quarter. Annualized growth slowed to 1.6% from the previous 3.4%, giving investors hope that the Federal Reserve (Fed) could accelerate interest rate cuts.
However, hopes for rate cuts were muted as US personal consumption expenditure (PCE) inflation accelerated in the first quarter. PCE inflation rose to 3.4%, compared to 1.7% in the previous quarter. This continued high inflation complicates the prospect of interest rate cuts, which weighed on market risk appetite during US trading.
On Friday, particular focus will be on the US PCE price index for March as investors look to take a closer look at the US inflation outlook. The core PCE price index is expected to remain unchanged at 0.3%, while the annual figure is expected to fall slightly from 2.8% to 2.6%.
In terms of technical outlook, EUR/USD price is trading just above the exponential moving average (EMA) on the 200 hourly line at 1.0690. However, there is a provider range between 1.0880 and 1.0860 that limits short-term bullish expectations. A possible fall below the 200-day EMA at 1.0795 could dent bullish sentiment, although a technical bottom is in place at 1.0600.