EUR/USD likely poised for further breakdown on dollar rebound
Last Update 10:00 AM
The EUR/USD pair closed flat for a second consecutive day around 1.1750, as US PPI data provided a reality check on where US inflation and therefore the Fed stand these days. US July headline PPI came in below expected, falling 0.1% monthly basis, and up by 1.9% when compared to a year earlier. The core readings were also a miss, clearly suggesting that the Fed would be in no rush for additional tightening. Additionally, Fed's Dudley spoke, saying that he expects inflation to surge above 2% in the medium term, and growth to remain moderate, adding to the case for a Fed's gradual policy-tightening plan.