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EUR/USD trades in a tight range near 1.1660 ahead of key US data

Investors are watching July US PCE inflation at 12:30 GMT and Fed Chair Kevin Warsh remarks at Jackson Hole, with Wells Fargo expecting little inflation surprise.

Reported · Written up by our desk · Major Pairs

EUR/USD remained stuck in a narrow range around 1.1660 against the US dollar during Asian trading on Wednesday as investors waited for upcoming US data and central bank signals, according to FXStreet.

The market is looking ahead to July Personal Consumption Expenditure Price Index inflation, due at 12:30 GMT. Wells Fargo said it is not expecting much of a surprise on inflation, citing recent CPI and PPI data that point to a 0.1% gain in the PCE deflator in July, bringing the year over year rate to 3.6%, and a 0.2% monthly rise in core PCE, leaving the annual core rate at 3.3%.

FXStreet also highlighted that the week’s key catalyst for major FX price action is Fed Chair Kevin Warsh’s remarks at the Jackson Hole Symposium, beginning early Thursday. On the euro side, Deutsche Bank analysts said they expect the European Central Bank to raise rates in September, projecting a final 25 basis point hike to reach a 2.50% terminal rate if there is no evidence of broad based second round effects.

From a technical perspective, FXStreet said EUR/USD was trading around 1.1664 and held above the 20 period exponential moving average at 1.1587, with the 14 period RSI near 68, suggesting strong buying pressure but rising odds of being near overbought levels. It identified support around the day’s open and pivot near 1.1664, with upside requiring a break above the August 21 high at 1.1711 to target higher levels such as the May high near 1.1800.

Latest closeEUR/USD 1.157 ▲0.4%

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