EUR/USD steady as softer US PPI fuels rate cut bets
The EUR/USD remains steady at around 1.1700 on Wednesday as market participants digest US economic data. US Dollar weakness triggered by a softer inflation report and growing speculation for the first rate cut by the Federal Reserve (Fed) keeps the pair trading within familiar levels.
Euro steadies as softer US PPI pressures US Dollar
The US Producer Price Index (PPI) in August was softer than projected in both headline and core prints.
Despite this, the market reaction was not as dovish as expected as traders await the release of the Consumer Price Index (CPI) on Thursday and Initial Jobless Claims for the week ending September 6.
Across the pond, the economic docket was empty, yet EUR/USD traders are focused on the outcome of the European Central Bank (ECB) monetary policy meeting.
Regarding geopolitics, news that Russian drones violated Poland’s airspace triggered a risk-off reaction in the pair, which ultimately turned negative.
In the meantime, US President Donald Trump asked the European Union (EU) to hit China and India with 100% tariffs in order to pressure Russian President Vladimir Putin to end the war with Ukraine.
Source: fxstreet