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Euro trades above mid-1.1600s vs USD as traders await US PCE

FXStreet said EUR/USD is holding above mid-1.1600s, with investors weighing expectations for a Fed rate hold in September and an ECB hike aimed at countering spillovers from the Iran war.

Reported · Written up by our desk · Major Pairs

The euro remained firm against the US dollar, with EUR/USD failing to extend a modest bounce from its weekly low and staying biased lower early in the European session on Wednesday, according to FXStreet.

Spot prices stayed above the mid-1.1600s area and remained close to the highest level seen since May 14, as traders waited for fresh guidance on the US Federal Reserve rate path.

FXStreet said focus is on the release of the US Personal Consumption Expenditures, or PCE, Price Index later in the day and on Fed Chair Kevin Warsh’s speech at the Jackson Hole Symposium on Friday, both of which could move USD expectations.

The outlet also pointed to a split in Fed and ECB expectations, including reports that European Central Bank policymakers are prepared to raise rates in September, and cited a Treasury buyback strategy plus falling crude oil prices that are weighing on US bond yields and helping limit upside for the dollar.

Latest closeWTI crude $82.40 ▲1.4%|EUR/USD 1.157 ▲0.4%

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