EUR/USD Sees Modest Gain Despite Fed Remarks, German Inflation in Focus

EUR/USD Sees Modest Gain Despite Fed Remarks, German Inflation in Focus

EUR/USD experienced a slight uptick despite recent comments from Federal Reserve officials echoing Chair Powell's stance, with attention now turning to German inflation data.

Key Points to Note:

- Despite the recent slide inspired by the Fed's remarks, EUR/USD remains within its established downtrend and trading range.

- The Euro is gradually rebounding within this range, supported by ongoing commentary from European Central Bank (ECB) speakers.

- Fed Chair Jerome Powell's indication that the Fed will hold off on rate cuts in March boosted the US Dollar against other major currencies.

- Additional remarks from Fed officials, including Loretta Mester and Neel Kashkari, have reinforced Powell's stance, suggesting a future rate cut but not in the immediate future.

- Similarly, ECB representatives are echoing a cautious approach, with Croatia's central bank governor Boris Vujcic highlighting the importance of waiting for clear signs of inflation stabilization before considering rate adjustments.

- German inflation data is expected to provide further insight into the Eurozone's economic health, particularly amid ongoing challenges in the region's powerhouse economy.

- Despite the Dollar's recent strength, EUR/USD has maintained its downtrend and trading range, with support at 1.07427 and potential psychological support at 1.07.

- Bulls may target the 200-day moving average at 1.08298, signaling a potential shift in momentum towards the range top at 1.08478.