EUR/USD reclaimed the area beyond 1.0700. The US Dollar faced renewed downside pressure. Markets now look at the release of US PCE. The irruption of selling interest in the US Dollar prompted the USD Index to give away part of the recent advance beyond the 106.00 level and refocus on the downside instead, allowing EUR/USD to regain balance and reclaim levels above 1.0700 the figure on Thursday.
She stated that rate cuts would be necessary if inflation stabilised around 2%. Her colleagueRaphael Bostic, President of the Atlanta Fed, argued that inflation in the USseems to be decreasing, potentially paving the way for the Fed to reduce interest rates later this year. The CME Group's FedWatch Tool maintains a probability of around 65% of lower interest rates in September vs. a nearly 93% chance at the December 18 gathering.