EUR/USD rallies further amid a weak US Dollar ahead of Eurozone's HICP
EUR/USD appreciates for the fourth consecutive day, trading near 1.1720 at the moment of writing on Friday and on track to its best weekly performance in the last three months. Market concerns about a Sino-US trade war and further signs that the Federal Reserve (Fed) will be forced to cut interest rates twice in its next two meetings are hurting the US Dollar (USD), while in Europe, all eyes are on September's final Harmonized Index of Consumer Prices (HICP) data.
The trade rift between the US and China keeps gripping markets after the US President, Donald Trump, affirmed that the country is already in a trade war with China, and Treasury Secretary Scott Bessent added fuel to the fire, accusing the Chinese trade negotiator of coming uninvitedly to Washington and behaving in an "unhinged" manner.
Beyond that, Fed Governor Christopher Waller said on Thursday that he favours another interest rate cut in October, while Stephen Miran, Trump's recent pick to the board, reiterated the need for more aggressive cuts. These comments echo the Fed's Beige Book warnings about some economic deterioration and strengthen the case for a series of rate cuts in the coming months, adding pressure to the US Dollar.
In the economic calendar on Friday, the highlight will be the Eurozone HICP, which is expected to confirm that price pressures accelerated in September. During the US Session, the Fed will release its Industrial Production report ahead of a speech by the St. Louis Fed President, Alberto Mussalem.
Source : Fxstreet.com
