Euro retreats below 1.1650 as inflation data buoys US Dollar ahead of Jackson Hole
The Euro (EUR) heads lower for the second consecutive day on Thursday, with the US Dollar (USD) supported by strong US inflation data released on Wednesday.
The Euro (EUR) experienced a decline for two days in a row on Thursday, as the US Dollar (USD) gained strength from robust US inflation statistics released on Wednesday. The EUR/USD currency pair fell to its weekly low of sub-1.1650 during European trading hours, marking a shift from the three-month peak above 1.1700 observed earlier in the week.
The US Dollar received backing from the US Personal Consumption Expenditures (PCE) Price Index, which was published on Wednesday, prompting Federal Reserve (Fed) policymakers to consider raising interest rates in the upcoming months. However, the anticipation of a September rate hike remains relatively unchanged, sitting at 36% as per the CME Group’s FedWatch Tool, as investors eagerly await Fed Chair Jerome Powell’s address at the Jackson Hole symposium on Friday for additional insights into the bank's monetary policy.
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Also reported by 3 other outlets
- Markets slips for second straight day; Jackson Hole, CAS takes centre stage thehindubusinessline.com
- Dollar recoups some losses as focus shifts to Fed remarks at Jackson Hole businesstimes.com.sg
- As Jackson Hole conference kicks off, two Fed officials warn about inflation finance.yahoo.com
