EUR/USD Reaches Weekly Lows After Strong US PPI Data, Trades Near 1.0870


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  • EUR/USD hit a weekly low at 1.0872 amid a stronger Greenback.
  • US Core PPI held steady with a 2.0% YoY and rose by 0.3% in February.
  • US Dollar appreciates despite the correction in US Treasury yields.
  • The EUR/USD pair continues its downward trend for the second consecutive day, hitting weekly lows near 1.0870 in the Asian session on Friday. The depreciation of the EUR/USD is attributed to the US Dollar (USD) gaining strength, buoyed by the robust Producer Price Index (PPI) data from the United States (US), signaling ongoing inflationary pressures in the economy.The US Core Producer Price Index (PPI) held steady with a 2.0% year-over-year increase in February, surpassing expectations which were set at 1.9%. Monthly, the report indicated a 0.3% uptick compared to the previous 0.5%, outperforming the anticipated 0.2% reading.In February, the US PPI (YoY) experienced a 1.6% increase, exceeding both the expected 1.1% and the previous 1.0%. Meanwhile, the PPI (MoM) saw a 0.6% rise, surpassing market expectations and the previous 0.3% increase.These figures add complexity to the Federal Reserve’s interest rate cut timeline. According to the CME FedWatch Tool, the probability of a rate cut in March currently sits at 1.0%, decreasing to 7.7% for May. The likelihood of rate cuts in June and July are comparatively lower, standing at 59.0% and 79.4%, respectively.The Euro confronts further hurdles due to the dovish stance emerging from European Central Bank (ECB) policymakers. François Villeroy de Galhau, an ECB policymaker, suggested on Wednesday that a rate cut in the spring remains probable. Additionally, on Thursday, ECB Governing Council member Yannis Stournaras advocated for an early rate reduction.On Friday, ECB Board Member Philip Richard Lane is scheduled to deliver a guest lecture at the Imperial College Business School in London, United Kingdom. Investors are expected to closely monitor his remarks for insights into the ECB’s policy direction.

    EUR/USD

    OVERVIEW Today last price 1.0874 Today Daily Change -0.0009 Today Daily Change % -0.08 Today daily open 1.0883

     

    TRENDS Daily SMA20 1.0859 Daily SMA50 1.0853 Daily SMA100 1.0855 Daily SMA200 1.0838

     

    LEVELS Previous Daily High 1.0956 Previous Daily Low 1.0881 Previous Weekly High 1.0981 Previous Weekly Low 1.0838 Previous Monthly High 1.0898 Previous Monthly Low 1.0695 Daily Fibonacci 38.2% 1.0909 Daily Fibonacci 61.8% 1.0927 Daily Pivot Point S1 1.0857 Daily Pivot Point S2 1.0832 Daily Pivot Point S3 1.0783 Daily Pivot Point R1 1.0932 Daily Pivot Point R2 1.0981 Daily Pivot Point R3 1.1007

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