In the recent FOMC meeting, the U.S. showed it is not ready to cut interest rates soon. Because of this, the euro dropped from 1.15 to 1.1401. After that, it went up to 1.1460. However, when the U.S. PCE inflation data came out stronger than expected during New York trading, the dollar became stronger again, and the euro fell to 1.1406. In the end, the fall stopped at around 1.14.
Many people believe the European Central Bank (ECB) will not cut interest rates anymore. If today’s Eurozone HICP (inflation data) is strong, people may think even more that rate cuts are over. This could lead to more euro buying.
Also, since it’s the end of the week, some investors may start buying back euros soon. Even if the HICP has little effect, the upcoming U.S. employment report or ISM manufacturing data may cause the euro to go up again.
But if the euro clearly falls below 1.14, it may fall even more, so investors need to be careful.
EUR/USD Price Range Forecast: 1.1390 – 1.1540 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.