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Euro steadies near 1.1675 as traders await US PCE data

The US Treasury’s plan to expand long-term bond buybacks beyond $4 billion a day could weigh on the US dollar against the euro while Middle East tensions add safe-haven support.

Reported · Written up by our desk · Major Pairs

EUR/USD held near 1.1675 in early Asian trading on Wednesday, with the pair steady ahead of the late-week release of the US Personal Consumption Expenditures, or PCE, Price Index data, according to FXStreet.

FXStreet said the US Treasury’s decision to expand its long-term bond buyback program could weigh on the US dollar versus the euro. US Treasury Secretary Scott Bessent previously indicated buybacks could rise beyond $4 billion a day, after plans to double buybacks of longer-dated securities.

At the same time, FXStreet noted that rising Middle East tensions could support the greenback through safe-haven flows. The US has threatened severe sanctions tied to economic links with Iran, while Tehran has vowed retaliation against countries involved in the US-led isolation campaign.

On the technical front, FXStreet reported that EUR/USD remains supported above the 100-day simple moving average and the Bollinger middle band, but the RSI(14) near 70 suggests overbought conditions that could limit immediate upside. Support was cited around 1.1580 to 1.1575, with a deeper level near 1.1456.

Latest closeEUR/USD 1.157 ▲0.4%

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