- EUR/USD rises slightly to 1.0788 after US Core PCE inflation data for February came in line with market forecasts.
- Headline PCE inflation for February shows a modest increase, maintaining market anticipation for the Federal Reserve's next moves.
- Upcoming speeches by Fed Chair Jerome Powell and Mary Daly are in the focus of EUR/USD investors.
EUR/USD is little changed after the US Bureau of Economic Analysis (BEA) revealed that the Federal Reserve's preferred inflation indicator, the core personal consumption expenditure (PCE) price index for February, it was in line with estimates. That being said, the EUR/USD pair is trading at 1.0788, posting a minuscule 0.02% gain on the day.
EUR/USD sees minimal movement after US inflation data
The BEA revealed that the underlying PCE stood at 0.3% month-on-month and 2.8% year-on-year, both figures in line with market consensus. General PCE figures rose 0.3% monthly, below expectations and below January data. In the 12 months to February, the PCE stood at 2.5%, as expected, but one tenth above the previous month's data.
Other data showed that the advance of wholesale inventories in February was 0.5% monthly, compared to -0.2% the previous month.
Low liquidity has taken the EUR/USD pair below 1.0780 before breaking above 1.0790. Buyers are awaiting a clear break above 1.0800, although they will face some intraday resistance, as the hourly chart shows, with the 50 SMA at 1.0800.
Additionally, investors will be watching San Francisco Fed President Mary Daly's speech at 15:20 GMT, followed by Fed Chair Jerome Powell's speech at 15:30 GMT.
According to BBH analysts, Fed Chairman Jerome Powell's speech will be important. Markets will be watching to see if Powell follows his lead or maintains the dovish tone of his press conference. “With Powell, it's always a toss-up, but as we've said countless times, the data will ultimately decide the timing of the first cut. As things stand, the odds of a cut on June 12 have fallen to 66% after rising to 85% after the FOMC.”
EUR/USD Price Analysis – Technical Outlook
During the European session, the pair recorded a low of 1.0767. However, EUR/USD rose above 1.0790 following the data release, and traders are targeting 1.0800. A decisive break would expose the March 28 high at 1.0827, followed by the 50-day moving average at 1.0834, ahead of 1.0835, the 200-day SMA. Once these levels are broken, the next would be the 100-day SMA at 1.0876. On the other hand, further losses are expected below 1.0750, which would expose the February 14 low at 1.0694.
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.
