EUR/USD rallied near 1.0600 on softer US Core PCE data, raising speculation that the Fed may pivot to rate cuts early next year. Weaker inflation figures eased pressure on the dollar, while subdued ECB hawkishness supported the euro’s rebound. Markets now price in a growing chance of Fed easing by H1 2026.
EUR/USD rallies as US Core PCE inflation comes in below expectations, fueling bets on earlier Fed rate cuts. Softer inflation data shifts market sentiment toward monetary easing, pushing the dollar lower and boosting the euro. Traders eye key technical levels amid evolving policy outlook.
Weekly Forex Forecast: DXY remains range-bound, eyes on Fed policy and inflation data as resistance near 105.50 holds. EUR/USD tests support around 1.0650 amid ECB rate cut bets and moderating Eurozone inflation. GBP/USD looks poised near 1.25 support ahead of UK GDP and labor data, with BoE rate decision in focus. USD/JPY faces resistance near 146 amid mixed BOJ signals and US yield trends. Key data and central bank guidance to set the tone this week.
The US dollar gained strength, hitting 10-month highs as Treasury yields climbed and the Fed signals caution but keeps options open for future hikes. The Japanese yen weakened near 150 per dollar with no sign of intervention ahead of key US data and the Bank of Japan’s upcoming meeting. Euro and sterling also slipped vs the strong dollar.
James Stanley’s latest Forex Factory article offers a detailed weekly forecast on DXY, EUR/USD, GBP/USD, and USD/JPY, highlighting USD strength post-strong NFP data, ECB easing impacting EUR, and BOE rate cut expectations affecting GBP. Traders should watch key support/resistance levels closely for potential moves. #Forex #USD #EURUSD #GBPUSD
EUR/USD rebounds above 1.0580 amid softer PCE inflation data sparking renewed bets on Fed rate cuts in early 2025. Dollar weakens as Treasury yields dip and risk sentiment improves, reflecting growing market optimism for a more dovish Fed path. #Forex #EURUSD #Fed
EUR/USD bounced back as the latest PCE inflation data aligned with expectations, fueling renewed bets on a Fed rate cut. Core PCE holding at 2.6% signals easing price pressures, pushing September rate cut odds above 60%. This shift boosted the euro against the dollar, highlighting the market’s focus on inflation trends and Fed policy outlook.
Weekly Forex Forecast by Justin Bennett:
The US Dollar Index (DXY) remains bullish but faces strong resistance near 106.10; a break above could extend gains toward 107.00, while support holds at 104.60. EUR/USD tests key support between 1.0720–1.0740 after falling below 1.0800, signaling downside risk if the dollar stays firm. GBP/USD approaches critical support around 1.2300; failure to hold may lead to further declines. USD/JPY looks to sustain levels above 139.00 amid mixed signals but remains influenced by DXY trends. Traders should monitor resistance and support clusters closely for next directional clarity.
Fed messaging remains the key driver behind recent FX volatility, as shifting policy signals fuel cautious market repricing. USD softens amid easing yields and rising risk appetite, while EUR/USD holds a range-bound stance supported by ECB-Fed divergence. Stay tuned for evolving dynamics. Read more: https://www.efxdata.com/insights/5e2d4e258593fced4f1cb7178212b04f.html
Weekly Forex Forecast May 13–17, 2024: Watch the U.S. CPI report as a key market mover. DXY tests critical support near 105.00 amid a bearish triangle, while EUR/USD eyes a bullish breakout above 1.0835–1.0865. USD/JPY and GBP/USD also poised for volatility. Prepare for potential trend shifts based on inflation data. #Forex #USD #EURUSD #CPI
