EUR/USD recovers from intraday lows on Thursday as traders digest a heavy batch of US economic data.
At the time of writing, the pair trades around 1.1362, staging a rebound from thirteen-month lows reached on Wednesday
Data from the US Bureau of Economic Analysis showed that the core Personal Consumption Expenditures (PCE) Price Index rose to 3.4% YoY in May from 3.3% in April. On a monthly basis, core PCE held steady at 0.3%. Meanwhile, headline PCE accelerated to 4.1% YoY from 3.8%, marking its highest annual reading since April 2023.
The in-line inflation data and stable core inflation readings prompted a modest pullback in the US Dollar (USD) after its recent rally to more than one-year highs. The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, traded around 101.50 after touching an intraday high of 101.75. Markets pared expectations for a September Fed rate hike, with the probability easing to 62% from 67% before the release, according to the CME FedWatch Tool.