The EUR/USD pair remains under pressure, trading around 1.1640 during Thursday’s Asian session after modest gains in the previous day. The Euro weakens against the US Dollar as markets await the release of HCOB Purchasing Managers’ Index (PMI) figures from Germany and the broader Eurozone.
Germany’s PMI data is due at 07:30 GMT, with the Services PMI forecast at 50.3. At 08:00 GMT, Eurozone readings will follow, with expectations of 49.5 for Manufacturing and 50.6 for Services.
On Wednesday, Eurostat reported that the EU Harmonized Index of Consumer Prices (HICP) rose 2% YoY in July, in line with forecasts. Core HICP also matched expectations at 2.3% YoY, unchanged from June.
Commenting on the broader outlook, ECB President Christine Lagarde said recent trade agreements have reduced but not eliminated uncertainty. She added that the European economy remains resilient despite global challenges.
Meanwhile, the US Dollar gained traction after the Federal Reserve’s July 29–30 meeting minutes signaled that officials see inflation risks as outweighing labor market concerns, with tariffs continuing to divide policymakers. The Fed left interest rates unchanged in the 4.25%–4.50% range.
According to the CME FedWatch tool, markets are pricing in an 82% probability of a September rate cut. Investors now await Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday for fresh policy cues.
