EUR/USD gains near 1.1750 ahead of German GfK Consumer Confidence Survey, Fedspeak
EUR/USD maintains its position ahead of the German GfK Consumer Confidence Survey.
The Euro struggled following the disappointing headline German IFO Business Climate Index released on Wednesday.
CME FedWatch tool indicates nearly a 92% possibility of a Fed rate cut in October.
EUR/USD rebounds after registering more than 0.5% losses in the previous session, trading around 1.1750 during the Asian hours on Thursday. The pair holds ground ahead of the German GfK Consumer Confidence Survey due later in the day.
The Euro (EUR) faced challenges against its peers following the disappointing headline German IFO Business Climate Index released on Wednesday, which unexpectedly fell to 87.7 in September from 89.0 in August. The data undermined the market expectations of 89.3.
However, the EUR/USD pair maintains its position as the US Dollar (USD) struggles ahead of the Fedspeak later in the day. Focus will shift toward Personal Consumption Expenditures (PCE) Price Index data, the Federal Reserve’s preferred inflation gauge, due later on Friday.
The US Dollar (USD) appreciated as the US Federal Reserve (Fed) Chair Jerome Powell struck a cautious note, stressing that the US central bank must weigh stubborn inflation against a softening job market, calling it “a challenging situation” and reiterating comments from last week. However, the CME FedWatch tool suggests that money markets are currently pricing in nearly a 92% possibility of a Fed rate cut in October, up from 87% a week earlier.
San Francisco Fed President Mary Daly said on Wednesday that further rate reductions are likely to be needed, as the central bank works to restore price stability and provide necessary support to the labor market. Chicago Fed President Austan Goolsbee broke away from the overarching narrative of consecutive Fed rate cuts heading through the end of the year, widening the narrative gap between Fed incumbents and Donald Trump's newly minted Fed pick, Stephen Miran.
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