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Euro extends gains, EUR/USD touches six-week high near 1.1534

EUR/USD was around 1.1534, while the DXY fell about 0.8% as traders weighed softer US core PCE and concerns about possible Japanese yen intervention.

Reported · Written up by our desk · Major Pairs

The euro extended its rise on Thursday, pushing EUR/USD to around 1.1534, its highest level since June 17, according to FXStreet. The move came as the US dollar stayed under pressure after the Federal Reserve left interest rates unchanged at 3.50% to 3.75% on Wednesday.

FXStreet attributed part of the greenback weakness to a busy set of US data and to suspected Japanese intervention aimed at stemming yen weakness. The US Dollar Index, which tracks the dollar versus a basket of six major currencies, was near 100 and down 0.8% on the day.

On the US side, the Bureau of Economic Analysis reported the US economy grew at a 1.5% annualized rate in the second quarter, below a 2.1% forecast and the 2.1% pace in the first quarter. The Fed’s preferred inflation measure, the Core PCE Price Index, rose 0.1% month over month in June, and eased to 3.3% year over year from 3.4%.

Despite the moderation, inflation remained above the Fed’s 2% target, FXStreet noted, and traders continued to look for a potential rate hike later this year, with the CME FedWatch tool showing about a 55% probability of a 25 basis-point increase in September. On the euro side, preliminary Eurozone GDP grew 0.4% quarter over quarter in the second quarter, beating the 0.2% forecast and reversing a prior quarter contraction.

Latest closeEUR/USD 1.147 ▲0.9%|Dollar index 100.80 ▼0.6%

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