The post EUR/USD looks to build on recovery from multi-week low; holds steady below mid-1.0800s appeared on BitcoinEthereumNews.com.

EUR/USD turns positive for the third straight day amid a broadly weaker USD.  Friday’s US PCE data fueled stagflation fears and continues to weigh on the buck. Trade war fears could limit USD losses and cap the pair ahead of German CPI. The EUR/USD pair attracts some dip-buyers following an Asian session dip to the 1.0800 neighborhood and looks to build on its bounce from a multi-week low touched last Thursday. The uptick, however, lacks bullish conviction, with spot prices currently trading near the 1.0835 region, unchanged for the day. The US Dollar (USD) remains under some selling pressure for the third straight day amid the risk of stagflation in the US and turns out to be a key factor acting as a tailwind for the EUR/USD pair. The USD bulls seem rather unimpressed by signs of rising inflation, which might hold back the Federal Reserve (Fed) from resuming its rate-cutting cycle in June. In fact, the US Personal Consumption Expenditure (PCE) Price Index released on Friday showed that the core gauge that excludes volatile food and energy prices rose 0.4% in February, marking the biggest monthly gain since January 2024 and lifting the yearly rate to 2.8%.  Adding to this, the University of Michigan survey showed that 12-month inflation expectations soared to the highest level in nearly 2-1/2 years during March. This overshadowed Consumer Spending data, which accelerated 0.4% last month after a downwardly revised 0.3% decline in January. This comes on top of the uncertainty over US President Donald Trump’s trade policies and should allow the Fed to adopt a  ‘wait-and-see’ approach towards easing monetary policy further. The outlook, however, does little to provide any meaningful impetus to the Greenback or exert any downward pressure on the EUR/USD pair.  The shared currency, on the other hand, seems to draw…

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Filed under: News - @ March 31, 2025 1:04 am