• EUR/USD holds modest gains as the US Dollar steadies after mixed US data.
• Delayed US economic data for September shows stronger Durable Goods Orders and lower Jobless Claims.
• ECB officials strike a cautious but slightly upbeat tone on growth and inflation trends.

The Euro (EUR) holds firm against the US Dollar (USD) on Wednesday, with EUR/USD edging higher after a brief dip following the latest US economic data. At the time of writing, the pair is trading around 1.1580, recovering from a daily low of 1.1547.

The delayed US September data showed Durable Goods Orders rising 0.5%, beating the 0.3% forecast after a 3% increase in August, while orders excluding transportation climbed 0.6%, above both the 0.2% forecast and the 0.5% level recorded in the previous month.

Orders excluding defense increased 0.1%, missing the 1.9% forecast and matching the August reading. Initial Jobless Claims came in at 216K, better than the 225K forecast, with the last published figure revised to 222K from 220K.

The second-tier releases did little to temper expectations for a December interest rate cut by the Federal Reserve (Fed), with markets pricing nearly an 80% chance of a 25 basis point (bps) cut at the December 9-10 meeting, according to the CME FedWatch Tool.

Against this backdrop, the Euro may find room for further upside as policy divergence persists, with the Fed outlook appearing more dovish while the European Central Bank (ECB) is expected to hold rates again at its next meeting.

The Eurozone had a light economic calendar on Wednesday, leaving EUR/USD driven mostly by US Dollar dynamics, although traders parsed remarks from ECB officials. Governing Council member Madis Müller said the ECB should not rush to cut rates on a small inflation undershoot and noted that the economy is likely on the road to recovery.

ECB Vice-President Luis de Guindos struck a slightly more positive tone on growth, saying risks are now balanced, while adding that services and wage inflation are progressing positively and that the current level of interest rates remains appropriate.