Strong US inflation data reinforces Fed rate hike expectations, weighing on the Euro ahead of Fed Chair remarks at Jackson Hole.
The Euro fell for a second straight session, trading below 1.1650 against the US Dollar as robust US inflation data bolstered the Greenback. The EUR/USD pair extended its decline from three-month highs above 1.1700, hitting weekly lows during European trading hours.
Wednesday’s US Personal Consumption Expenditures (PCE) Price Index supported Fed hawks, keeping bets on a September rate hike steady at 36%, per CME Group’s FedWatch Tool. Investors await Fed Chair Jerome Powell’s speech at Jackson Hole on Friday for further policy signals.
German economic data, including an improved GfK Consumer Sentiment Index and upwardly revised Q2 GDP, failed to lift the Euro. The ECB’s meeting minutes, due later Thursday, may offer limited support amid thin data.