Weaker-than-expected US inflation figures weigh on the USD, lifting EUR/USD as traders anticipate a less aggressive Fed.
The EUR/USD pair climbed 0.41% to 1.1466 on Wednesday after US inflation data came in softer than expected, reducing pressure on the US dollar. Market participants are now pricing in a less hawkish Federal Reserve stance toward year-end, supporting the euro’s gains.
Technically, the pair remains downwardly biased but trades near 19-day highs. The Relative Strength Index (RSI) has turned bullish, signaling potential for further recovery. Key resistance levels include 1.1500, followed by the 50-day SMA at 1.1542 and the 100-day SMA at 1.1592. Support lies at 1.1400 and 1.1377.
The euro was the strongest major currency this week, particularly against the Japanese yen, reflecting broader market shifts in response to US economic data.