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The EUR/USD pair extends the rally to 1.0885 during the early Asian session on Friday. The uptick of the major pair is bolstered by the weakening of the US Dollar (USD). All eyes will be on the US Nonfarm Payrolls (NFP), which is due later on Friday.
The US Personal Consumption Expenditures (PCE) Price Index, rose 2.1% on a yearly basis in September, compared to 2.2% in August, the US Bureau of Economic Analysis (BEA) reported on Thursday. This figure came in line with market expectations. On a monthly basis, the PCE increased 0.2%, as expected.
Meanwhile, the core PCE Price Index, which excludes volatile food and energy prices, jumped 2.7% in the same period, matching August’s rise and above the market estimation of 2.6%. The core PCE Price Index rose 0.3% on a monthly basis, in line with the consensus.
Traders will keep an eye on the release of US employment data on Friday, including the Nonfarm Payrolls (NFP), Unemployment Rate and Average Hourly Earnings. The stronger-than-expected outcome could dampen the hope for larger bets of the US Federal Reserve (Fed) rate cut, boosting the Greenback against the Euro (EUR).
Across the pond, the European Central Bank (ECB) noted that inflation pressures remain high, driven by wage growth. During its latest meeting in October, the ECB reiterated its commitment to a “data-dependent and meeting-by-meeting” approach to future policy decisions. The money markets are currently pricing in a 34 basis points (bps) rate cut, down from 42 bps in the previous day, suggesting that the possibility of a larger 0.5% cut is diminishing.More By This Author:USD/CHF Softens To Near 0.8650 Ahead Of US PCE Inflation Data
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