EUR/USD grinds chart paper above 1.0800 after Fed fails to spark rate rally

Mitrade
coverImg
Source: DepositPhotos

■EUR/USD continues to chill after testing above 1.0840 this week.

■Fedspeak from Fed Chair Powell failed to deliver a dovish-enough stance.

■US inflation data to be the key print later in the week.


EUR/USD continues to settle closer to 1.0800 after a misfire in market expectations of Federal Reserve (Fed) Chairman Jerome Powell’s testimony before US Congress on Tuesday. Despite a head nod to improving inflation figures, the Fed is still leaning firmly in a cautionary stance, pulling the rug from beneath markets that were coiled in anticipation of a tonal shift from Fed policymakers.


Forex Today: Focus remains on Powell and Fedspeak


Traders are battening down the hatches for the wait to key US inflation data prints later in the week, with a smattering of Fed speakers and Fed Chair Powell’s second round of testifying due on Wednesday.


US Consumer Price Index (CPI) inflation data slated for Thursday will be the key driver of market volumes in the back half of the trading week. Investors hungry for rate cuts will be looking for CPI inflation to churn lower, but median market forecasting models broadly expect annualized core CPI for the year ended in June to hold steady at 3.4% YoY, while headline CPI inflation is expected to tick upwards to 0.1% MoM in June versus the previous flat print of 0.0%.


Initial Jobless Claims for the week ended July 5 are also on the docket for Thursday, and are forecast to tick down to 236K from the previous 238K.


Finally, German Harmonized Index of Consumer Prices (HICP) inflation figures are due early Thursday, but YoY German inflation in June is expected to hold steady at the previous print of 2.5%.


EUR/USD technical outlook


The Fiber is on a slow grind near 1.0800 after peaking earlier this week just north of 1.0840, and intraday price action is getting squeezed between downside pressure and technical support from the 200-hour Exponential Moving Average (EMA) at 1.0787.


EUR/USD looks set to run out of gas in a near-term bullish push from the last swing low near 1.0660. With momentum draining out of the Fiber, the pair is set for a tumble back below the 200-day EMA at 1.0784.


EUR/USD hourly chart


EUR/USD daily chart


Read more

  • WTI Price Forecast: Dips to $91.50 as Middle East jitters limit losses
  • * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

    goTop
    quote
    Related Articles
    placeholder
    United States Dollar Index sits near March 2025 highs, above 102.00 ahead of US NFPThe US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts buyers for the fifth straight day and climbs back above the 102.00 mark during the Asian session on Friday.
    Author  FXStreet
    Oct 02, Fri
    The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts buyers for the fifth straight day and climbs back above the 102.00 mark during the Asian session on Friday.
    placeholder
    US September Nonfarm Payrolls Preview: Job Growth May Cool, How Will US Stocks, Dollar and Gold React?On Friday, October 2 (EDT), the U.S. will release its September nonfarm payrolls report, with markets focusing on whether job growth can sustain August's rebound and whether the data will
    Author  TradingKey
    Oct 01, Thu
    On Friday, October 2 (EDT), the U.S. will release its September nonfarm payrolls report, with markets focusing on whether job growth can sustain August's rebound and whether the data will
    placeholder
    【Daily Brief】30-year Treasury tops 5.59%, S&P 500 slips to 7,670 and gold holds $4,180 — PCE lands tonightThe 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
    Author  Suzie
    Sep 30, Wed
    The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
    placeholder
    【Daily Brief】The dollar ground higher for six days — and the AUD fell 2% in the very week the RBA hiked to a 15-year highThe dollar index held above 101 while the Australian dollar slid to a two-month low of 0.6976, a 2.02% six-session loss, even though the RBA raised rates to 4.60% and Australian CPI printed 4.0%. The yen is the only major currency gaining, ahead of Japan's monthly intervention tally at 7pm JST.
    Author  Irene Q.
    Sep 30, Wed
    The dollar index held above 101 while the Australian dollar slid to a two-month low of 0.6976, a 2.02% six-session loss, even though the RBA raised rates to 4.60% and Australian CPI printed 4.0%. The yen is the only major currency gaining, ahead of Japan's monthly intervention tally at 7pm JST.
    placeholder
    October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
    Author  Irene Q.
    Sep 23, Wed
    Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
    Live Quotes
    Name / SymbolChart% Change / Price
    EURUSD
    EURUSD
    0.00%0.00

    USD Related Articles

    • Financial Markets 2026: Volatility Catalysts in Gold, Silver, Oil, and Blue-Chip Stocks—A CFD Trader's Outlook
    • Best Currency Pairs To Trade 2026: Guide to Choosing Currency Pairs
    • Trading Chart Patterns:Ultimate Guide to Price Action
    • Australian Dollar Forecast In 2024/2025/2026: Should I Buy AUD/USD Or Other AUD Currency Pairs?
    • AUD/USD holds above 0.6500, eyes on RBA Minutes

    Click to view more