Euro gains as US Dollar retreats despite firm PCE inflation, German sentiment improves slightly

EUR/USD trades slightly higher as USD weakens despite solid US economic data.
US PCE inflation rose to 4.1% YoY in May, while core PCE increased 3.4% YoY, both matching market expectations.
US labor and growth data remained resilient, with Jobless Claims falling to 215K and Q1 GDP revised up to 2.1%.

Agustin Wazne FXStreet

The EUR/USD pair elevated slightly near 1.1380 trades with mild gains on Thursday, as the US Dollar (USD) loses momentum despite a fresh batch of United States (US) economic data showing sticky inflation, stronger growth, and resilient labor market conditions.

Annual inflation in the United States, measured by the Personal Consumption Expenditures (PCE) Price Index, climbed to 4.1% in May from 3.8% in April, according to the US Bureau of Economic Analysis. The reading came in line with market expectations. In the same period, the core PCE Price Index, which excludes volatile food and energy prices, rose by a tenth of a percentage point to 3.4% YoY, also matching forecasts.

Earlier in the day, US data showed that Initial Jobless Claims fell to 215K in the week ending June 20, below expectations and down from the previous revised 227K reading. Meanwhile, the final estimate of first-quarter US Gross Domestic Product (GDP) showed the economy expanding at an annualized rate of 2.1%, revised higher from the previous estimate of 1.6%.

On the Eurozone side, German sentiment data offered modest support to the Euro as the GfK Consumer Confidence Survey for July improved slightly to -29.2 from a revised -29.7, although the reading remained weak.

Short-term technical analysis:

On the 4-hour chart, EUR/USD trades at 1.1380, maintaining a bearish near-term bias as it remains below both the 20-period Simple Moving Average (SMA) at 1.1383 and the 100-period SMA at 1.1521. Short-term price action is pressing against immediate overhead supply clustered around the 20-period SMA and the nearby horizontal resistance at 1.1388, while the Relative Strength Index (RSI) has recovered toward the mid-40s, hinting at stabilizing momentum but not yet signaling a decisive bullish shift.

On the downside, initial support emerges at 1.1360, with further floors at 1.1336 and 1.1324 if selling pressure resumes. On the topside, a break above the tight resistance band formed by the 20-period SMA at 1.1383 and the 1.1388 horizontal barrier would be needed to ease immediate downside pressure, while the 100-period SMA at 1.1521 remains a more distant cap on any sustained recovery attempts.

(The technical analysis of this story was written with the help of an AI tool.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

GBP/USD climbs to two-day highs past 1.3200

GBP/USD picks up extra pace and surpasses the 1.3200 threshold on Thursday. That said, Cable manages to shrug off initial weakness and regain balance on the back of the fresh selling pressure hurting the Greenback.

EUR/USD pushes harder; focus is back to 1.1400

EUR/USD’s daily recovery now gathers steam, sending spot to the vicinity of the key 1.1400 barrier on Thursday. The pair’s bounce follows some decent loss of momentum in the US Dollar in the wake of the release of US PCE data and the weekly labour market readings.

Gold bounces from 2026 lows, remains pressured

Gold reverses part of its recent weakness on Thursday, managing to reclaim the area just above the $4,000 mark per troy ounce. The precious metal regains traction on the back of renewed selling interest in the Greenback, although expectations of rate hikes by the Fed are likely to keep buyers on the sidelines for now.

Bitcoin tests $60,000 as whales sell off – Aave and Jupiter show resilience

The broader cryptocurrency market remains under intense selling pressure, with Bitcoin back at $60,000 for the third time this year. On-chain data shows selling pressure from large-wallet investors, commonly referred to as whales, while total liquidations hit nearly $1 billion in 24 hours.

Crypto Today: Bitcoin, Ethereum, and Ripple defend their last line of defenses

The broader cryptocurrency market remains under immense downward pressure as investors' interest shifts toward lucrative AI and memory stocks. Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are holding above their June 6 lows, with bulls hoping short-term resilience will ward off sellers.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.