- EUR/USD remains subdued as traders look ahead to HCOB Purchase Manager Index data.
- The forecast for the Eurozone HCOB PMIs is 49.5 for manufacturing and 50.6 for services.
- FOMC meeting minutes revealed that most members considered keeping interest rates unchanged appropriate.
After a slight uptick in the prior session, the EUR/USD remained low, hovering around 1.1640 during the Asian trading hours on Thursday. The Euro has lost some ground against the US Dollar as traders await the HCOB Purchase Manager Index (PMI) data for Germany and the Eurozone.
The HCOB PMI figures from Germany are set to be unveiled at 07:30 GMT, with the service PMI anticipated to be around 50.3. The Eurozone HCOB PMI will follow at 08:00 GMT, where forecasts suggest 49.5 for manufacturing and 50.6 for services.
On Wednesday, Eurostat stated that the harmonized consumer price index (HICP) within the European Union was up 2% year-on-year in July. Core HICP figures also matched expectations with an annual rate of 2.3%, consistent with the June print.
Christine Lagarde, President of the ECB, mentioned that while recent trade activities have alleviated some uncertainty, it hasn’t entirely been dismissed. She also noted that the European economy appears to be resilient despite ongoing global challenges.
The EUR/USD might face some downward pressure after the release of the Federal Open Market Committee (FOMC) minutes from their July 29-30 meeting, which showed that most participants believed that the risk of inflation was a greater concern than labor market issues. Consequently, it was deemed appropriate to keep benchmark interest rates in the 4.25% to 4.50% range.
According to the CME FedWatch tool, traders in Fed funds currently anticipate an 82% probability of interest rate cuts in September. Many are waiting for a speech from Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium in Wyoming on Friday, as it might provide insights into upcoming policy decisions.
