EUR/USD Consolidates at 1.1700 as Dollar Strength Reasserts
The EUR/USD pair closed the week near 1.1700, rebounding after dipping toward 1.1650 earlier in the session. The euro regained some ground following U.S. inflation data that matched expectations, with Core PCE rising 0.2% month-over-month and 2.9% year-over-year in August. Headline PCE came in at 2.7% annually, reinforcing market conviction that the Federal Reserve will proceed with rate cuts into year-end. Futures markets now price an 88% probability of an October cut and 65% odds of another in December, providing short-term support for the shared currency. However, the rebound is capped by the dollar’s resilience, driven by stronger U.S. growth metrics, including revised Q2 GDP at 3.8% and durable goods orders rising 2.9% in August, alongside jobless claims falling to 218,000.
