EUR/USD flat lines near 1.0300 on softer US CPI data

Mitrade
coverImg
Source: DepositPhotos
  • EUR/USD trades flat around 1.0295 in Thursday’s early Asian session. 

  • The softer US core CPI data revives Fed easing expectations, which cap the upside for the USD. 

  • Traders see the ECB delivering three or four rate cuts this year. 

The EUR/USD pair holds steady around 1.0295 during the early Asian session on Thursday. The cooler-than-expected US Consumer Price Index (CPI) inflation data for December raises the bet that the US Federal Reserve (Fed) could cut interest rates twice this year, which weighs on the Greenback. However, rising concerns over Eurozone economic growth might cap the upside for the major pair. 


The US Dollar (USD) declined after the US core CPI data came in softer than estimated, triggering expectations that the Fed's easing cycle may not be over yet. Markets now expect the US central bank to deliver 40 basis points (bps) of rate cuts by year-end, compared with about 31 bps before the inflation data.



Across the pond, the European Central Bank (ECB) delivered rate cuts four times last year, and traders expect three or four moves this year due to the concerns about the Eurozone's weak economic outlook. The rising bets of further interest rate reductions from the ECB could undermine the Euro (EUR) against the USD in the near term. 


Later on Thursday, investors will keep an eye on Germany’s Harmonized Index of Consumer Prices (HICP) for December and the ECB Monetary Policy Meeting Accounts. On the US docket, the Retail Sales for December and weekly Initial Jobless Claims will be the highlights. 

Read more

  • Gold Price Forecast: XAU/USD retraces gains and nears two-month lows at $4,104
  • AUD/USD Price Forecast: Struggles to return to 0.7000 amid firm US Dollar
  • Japanese Yen drifts lower as sustained USD buying offsets intervention fears
  • * 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
    Euro slides to a 17-month low as France's budget crisis spreads — can 1.12 hold?EUR/USD touched 1.1162 on 5 October, its weakest level in 17 months, as France's budget standoff pushed the 10-year OAT above 5% and the OAT-Bund spread to roughly 160bp — the widest since the 2011-12 eurozone debt crisis. The euro now trades near 1.1215 ahead of US jobless claims and a $22 billion 30-year Treasury auction. Here are the levels and the two scenarios to watch.
    Author  Irene Q.
    8 hours ago
    EUR/USD touched 1.1162 on 5 October, its weakest level in 17 months, as France's budget standoff pushed the 10-year OAT above 5% and the OAT-Bund spread to roughly 160bp — the widest since the 2011-12 eurozone debt crisis. The euro now trades near 1.1215 ahead of US jobless claims and a $22 billion 30-year Treasury auction. Here are the levels and the two scenarios to watch.
    placeholder
    AUD/USD Price Forecast: Struggles to return to 0.7000 amid firm US DollarThe Australian Dollar (AUD) gives back its early gains after rising to near 0.6975 and turns marginally lower at around 0.6964 against the US Dollar (USD) during the European trading session on Tuesday.
    Author  FXStreet
    Oct 06, Tue
    The Australian Dollar (AUD) gives back its early gains after rising to near 0.6975 and turns marginally lower at around 0.6964 against the US Dollar (USD) during the European trading session on Tuesday.
    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
    【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
    RBA set to hike interest rate to 4.60% in September as inflation remains elevatedThe Reserve Bank of Australia (RBA) is widely expected to raise the Official Cash Rate (OCR) by 25 basis points (bps) to 4.60% from 4.35% on Tuesday, after keeping rates unchanged at its previous two meetings
    Author  FXStreet
    Sep 29, Tue
    The Reserve Bank of Australia (RBA) is widely expected to raise the Official Cash Rate (OCR) by 25 basis points (bps) to 4.60% from 4.35% on Tuesday, after keeping rates unchanged at its previous two meetings
    Live Quotes
    Name / SymbolChart% Change / Price
    EURUSD
    EURUSD
    0.00%0.00

    Forex Related Articles

    • How to Identify Forex Scams? Warning Signs Every Trader Should Know
    • Stop Loss: Your Savior In The Market
    • Is Mitrade a Legit Broker? A Transparent Review of Security, Platform, and Trading Conditions (2026 Updated)
    • Is Mitrade Right for You? A Complete Guide on How to Start Trading CFDs in 5 Steps
    • 6 Leading ASIC-Regulated Forex Trading Platforms&Apps in Australia (2026 Update)
    • Forex Trading In Malaysia - Top 10 Forex Brokers for Malaysia: Regulated & Trader-Friendly Picks

    Click to view more