EUR/USD Holds Steady as Core PCE Meets Expectations

The EUR/USD pair sees a slight uptick to 1.0788 after the February Core Personal Consumption Expenditure (PCE) inflation data aligns with market expectations. Despite the release of US inflation data, the EUR/USD remains relatively unchanged, trading at 1.0788 with minimal gains of 0.02%.

Core PCE Data Matches Market Consensus

The latest data from the US Bureau of Economic Analysis (BEA) reveals that the Core PCE inflation for February stood at 0.3% month-on-month and 2.8% year-on-year, which aligns with market forecasts. Meanwhile, headline PCE figures also showed a modest increase, with a 0.3% month-on-month rise, although slightly lower than expectations. However, the 12-month PCE figure was 2.5%, a tenth higher than the previous month.

EUR/USD Technical Outlook

Despite thin liquidity conditions, the EUR/USD briefly dipped below 1.0780 before rebounding above 1.0790. Buyers are now targeting a clear break above 1.0800, facing intraday resistance near that level’s 50-Simple Moving Average (SMA). Additionally, traders monitor upcoming speeches by San Francisco Fed President Mary Daly and Fed Chair Jerome Powell for further market cues.

Key Takeaways

• EUR/USD remains relatively unchanged after the release of the Core PCE data.
• Core PCE inflation for February meets market expectations.
• EUR/USD faces intraday resistance near 1.0800.
• Traders await speeches by Fed officials for further guidance on monetary policy.

EUR/USD