Euro climbs to six-week high as suspected Japanese intervention pressures Greenback
- EUR/USD climbs to its highest level since June 17 as the US Dollar weakens.
- US inflation cools and second-quarter growth disappoints following the Fed's interest rate decision.
- Stronger Eurozone growth supports the Euro and strengthens the case for the ECB to raise rates in September.
EUR/USD extends its gains on Thursday as the Greenback remains under pressure as traders digest a busy batch of US economic data after the Federal Reserve (Fed) left interest rates unchanged at 3.50%-3.75% on Wednesday. Meanwhile, suspected intervention by Japanese authorities to stem the Yen’s weakness adds to the broader selling pressure on the US Dollar (USD).
At the time of writing, EUR/USD trades around 1.1534, its highest level since June 17. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades near 100, down 0.80% on the day.
The US economy grew at an annualized rate of 1.5% in the second quarter, below both the 2.1% market forecast and the 2.1% pace recorded in the first quarter, according to the advance estimate from the US Bureau of Economic Analysis (BEA).
Meanwhile, the Federal Reserve’s (Fed) preferred measure of underlying inflation cooled slightly in June. The Core PCE Price Index rose 0.1% MoM, below the 0.2% forecast and down from 0.3% in May. On an annual basis, core inflation eased to 3.3% from 3.4%, matching expectations.
Personal income increased 0.2% in June, slowing from 0.7% in May, while personal spending rose 0.3%, easing from the previous month's 0.9% gain.
Despite the moderation, inflation remains well above the Fed’s 2% target and could accelerate again as the war in the Middle East keeps Oil prices elevated.
Traders still expect the Fed to raise interest rates later this year, with the CME FedWatch Tool showing roughly a 55% probability of a 25-basis-point hike in September.
On the Euro side, the shared currency also draws support from stronger-than-expected Eurozone growth data. Preliminary Gross Domestic Product expanded 0.4% QoQ in the second quarter, beating the 0.2% forecast and reversing the 0.2% contraction recorded in the previous quarter.
Strategists at Brown Brothers Harriman note that the ECB “projects real GDP growth to average 0.8% in 2026 with risk skewed to the downside as renewed disruption of energy supplies would weigh on real incomes, spending, and investment.” Against this backdrop, BBH argues that the “recovery in Eurozone economic activity and above target inflation reinforces the case for the ECB to resume raising rates in September.”
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.43% | -0.38% | -2.10% | -0.22% | -0.82% | -1.26% | -0.80% | |
| EUR | 0.43% | 0.04% | -1.62% | 0.21% | -0.40% | -0.85% | -0.37% | |
| GBP | 0.38% | -0.04% | -1.63% | 0.16% | -0.44% | -0.88% | -0.39% | |
| JPY | 2.10% | 1.62% | 1.63% | 1.86% | 1.25% | 0.79% | 1.30% | |
| CAD | 0.22% | -0.21% | -0.16% | -1.86% | -0.60% | -1.06% | -0.56% | |
| AUD | 0.82% | 0.40% | 0.44% | -1.25% | 0.60% | -0.44% | 0.03% | |
| NZD | 1.26% | 0.85% | 0.88% | -0.79% | 1.06% | 0.44% | 0.53% | |
| CHF | 0.80% | 0.37% | 0.39% | -1.30% | 0.56% | -0.03% | -0.53% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
