EUR/USD hits multi-year highs as USD struggles despite hotter PCE print
The post EUR/USD hits multi-year highs as USD struggles despite hotter PCE print appeared on BitcoinEthereumNews.com. EUR/USD extends winning streak to seven days, hovering near 1.1726 after reaching a multi-year high of 1.1754. The US Dollar is pressured by Trump’s remarks, mixed macro data and Fed cut bets. Focus shifts to next week’s Eurozone flash inflation and US ISM PMI data. The Euro (EUR) climbs for an eighth consecutive day against the US Dollar (USD) on Friday, as the Greenback remains under pressure amid a combination of political and economic headwinds. Renewed criticism of Federal Reserve (Fed) Chair Jerome Powell by US President Donald Trump, easing geopolitical tensions, and a string of mixed US economic data are fueling expectations of a Fed interest rate cut, which is weighing on the US Dollar. EUR/USD is holding just slightly higher on the day—up 0.20%—and reached its highest level since September 2021 at 1.1754. At the time of writing, the pair is hovering around 1.1726 during the American session. Meanwhile, the US Dollar Index (DXY) continues its descent, though price action is largely sideways on Friday, with the index finding a foothold just above the 97.00 mark following upbeat core Personal Consumption Expenditure (PCE) inflation figures. The headline PCE price index rose 0.1% MoM in May, matching April’s pace and consensus forecasts. However, the core PCE index—closely monitored by the Fed—ticked up 0.2% on the month, outpacing expectations and prior readings. On a yearly basis, core PCE accelerated to 2.7% from a revised 2.6%, signaling sticky underlying inflation and complicating the Fed’s rate-cut calculus. Still, markets largely shrugged off the inflation uptick, choosing instead to focus on the broader slowdown in economic activity. The US economy contracted 0.5% in Q1 2025—its first decline in three years—while consumer spending and personal income also showed signs of weakening. The combination of soft growth and political pressure on the Fed has strengthened…
The post EUR/USD hits multi-year highs as USD struggles despite hotter PCE print appeared on BitcoinEthereumNews.com.
EUR/USD extends winning streak to seven days, hovering near 1.1726 after reaching a multi-year high of 1.1754. The US Dollar is pressured by Trump’s remarks, mixed macro data and Fed cut bets. Focus shifts to next week’s Eurozone flash inflation and US ISM PMI data. The Euro (EUR) climbs for an eighth consecutive day against the US Dollar (USD) on Friday, as the Greenback remains under pressure amid a combination of political and economic headwinds. Renewed criticism of Federal Reserve (Fed) Chair Jerome Powell by US President Donald Trump, easing geopolitical tensions, and a string of mixed US economic data are fueling expectations of a Fed interest rate cut, which is weighing on the US Dollar. EUR/USD is holding just slightly higher on the day—up 0.20%—and reached its highest level since September 2021 at 1.1754. At the time of writing, the pair is hovering around 1.1726 during the American session. Meanwhile, the US Dollar Index (DXY) continues its descent, though price action is largely sideways on Friday, with the index finding a foothold just above the 97.00 mark following upbeat core Personal Consumption Expenditure (PCE) inflation figures. The headline PCE price index rose 0.1% MoM in May, matching April’s pace and consensus forecasts. However, the core PCE index—closely monitored by the Fed—ticked up 0.2% on the month, outpacing expectations and prior readings. On a yearly basis, core PCE accelerated to 2.7% from a revised 2.6%, signaling sticky underlying inflation and complicating the Fed’s rate-cut calculus. Still, markets largely shrugged off the inflation uptick, choosing instead to focus on the broader slowdown in economic activity. The US economy contracted 0.5% in Q1 2025—its first decline in three years—while consumer spending and personal income also showed signs of weakening. The combination of soft growth and political pressure on the Fed has strengthened…
What's Your Reaction?
