- EUR/USD rises and extends the bullish cycle towards 1.0950.
- All eyes will be on Friday’s US PCE data.
The pair EUR/USD it has rebounded as fears about problems in the banking sector have eased, and US stocks on Wall Street have risen on encouraging economic signs from the chip industry. In a risky environment, the EUR/USD pair has moved from a low of 1.0823 to a high of 1.0926 as investors are more confident that the recent stress in the banking sector will be contained.
Banking turbulence caused by the failure of two regional US banks had sparked concerns about contagion in the banking sector, prompting a drastic change in the Federal Reserve’s monetary policy expectations. Meanwhile, according to CME Group’s Fedwatch tool, bets are now split almost evenly between a pause and a 25 basis point rate hike by the Fed in May,
For more information, investors are awaiting the February personal consumption expenditure (PCE) reading on Friday and this is the Fed’s preferred inflation gauge. January numbers showed a sharp acceleration in consumer spending , so the data will be closely monitored.
Meanwhile, US data on Thursday showed last week’s jobless claims rose more than expected from the previous week, signaling a cooling job market, while quarter-quarter gross domestic product growth quarter was slightly lower at 2.6%, compared to previous estimates of 2.7%, both supporting the case for dovish Fed policy.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
