{"id":117799,"date":"2025-08-16T00:04:42","date_gmt":"2025-08-15T20:04:42","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=117799"},"modified":"2025-08-16T00:05:51","modified_gmt":"2025-08-15T20:05:51","slug":"eur-usd-surges-as-us-inflation-stokes-fed-rate-cut-doubts","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/eur-usd-surges-as-us-inflation-stokes-fed-rate-cut-doubts\/08\/16\/market-updates\/","title":{"rendered":"EUR\/USD Surges as US Inflation Stokes Fed Rate Cut Doubts"},"content":{"rendered":"The EUR\/USD pair powered through a second straight week of gains, climbing to a high of 1.1730 and settling just above 1.1700, eyeing this year\u2019s peak at 1.1830. While the Euro showed modest strength amid lackluster European data, the US Dollar took a hit as markets grappled with mixed inflation signals and tariff concerns. With central bank leaders set to convene at the Jackson Hole Symposium, global eyes are on the Federal Reserve\u2019s next moves.<br \/><br \/>US inflation data painted a complex picture. July\u2019s Consumer Price Index (CPI) held steady at 2.7% year-on-year, below the expected 2.8%, with core CPI ticking up to 3.1% from 2.9%. Monthly CPI rose 0.2%, in line with forecasts but softer than anticipated. This initially fueled bets for a September rate cut, sending the USD lower and Wall Street higher. However, Thursday\u2019s Producer Price Index (PPI) threw a curveball, surging to 3.3% annually from 2.4%, far above the 2.5% expected, with core PPI jumping to 3.7%. The data reignited fears of tariff-driven inflation, flipping market sentiment and boosting the USD as stocks slid.<br \/><br \/>The Fed\u2019s cautious stance, pausing rate hikes by late 2024, reflects concerns over President Trump\u2019s tariffs fanning price pressures. Despite a resilient US economy and a softening labor market, the odds of a 25 basis point rate cut in September dipped slightly from 90% after the PPI shock. Trump\u2019s public criticism of Fed Chair Jerome Powell, whose term ends in May 2026, and talks of a new chair added to the uncertainty. Meanwhile, a 90-day tariff truce extension between the US and China, with US tariffs at 30% and China\u2019s at 10%, eased some fears but didn\u2019t erase inflation worries.<br \/><br \/>Across the Atlantic, Eurozone data disappointed. Germany\u2019s August ZEW Economic Sentiment Index plummeted to 34.7 from 52.7, missing the 40 forecast, while the EU\u2019s index fell to 25.1 from 36.1. Germany\u2019s current situation assessment worsened to -68.6, and its July Harmonized CPI confirmed a modest 1.8% annual rise. The Eurozone\u2019s Q2 GDP grew a sluggish 0.1%, and June Industrial Production contracted by 1.3%, worse than expected. The Euro struggled to find momentum, leaning on USD weakness for gains.<br \/><br \/>Looking ahead, the Jackson Hole Symposium, themed \u201cLabor Markets in Transition,\u201d will feature Fed Chair Powell and ECB President Christine Lagarde, potentially shaping rate expectations. Wednesday\u2019s FOMC Minutes and Thursday\u2019s preliminary August PMIs for major economies will also guide markets. For now, EUR\/USD\u2019s bullish run hinges on US economic signals and tariff outcomes, with traders watching for clues on whether the pair can reclaim its yearly high.","protected":false},"excerpt":{"rendered":"<p>The EUR\/USD pair powered through a second straight week of gains, climbing to a high of 1.1730 and settling just above 1.1700, eyeing this year\u2019s peak at 1.1830. While the Euro showed modest strength amid lackluster European data, the US Dollar took a hit as markets grappled with mixed inflation signals and tariff concerns. With &hellip;<\/p>\n","protected":false},"author":13,"featured_media":107837,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[],"class_list":["post-117799","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/117799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=117799"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/117799\/revisions"}],"predecessor-version":[{"id":117801,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/117799\/revisions\/117801"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/107837"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=117799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=117799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=117799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}