EUR/USD slips to near 1.0450 ahead of Eurozone HICP and US ISM PMI
- EUR/USD has corrected to near 1.0453 as DXY has rebounded after a significant fall.
- Underperformance in the US ISM PMI may fade reversal signals in the DXY.
- As per the estimates of the eurozone HICP, the economic data is eyeing an establishment above 8%.
The EUR/USD pair has recorded a minor correction after hitting a high of 1.0489 on Thursday. The major has modestly corrected to near 1.0453 and is expected to remain on the sidelines as investors are awaiting the release of the US ISM PMI and eurozone Harmonized Index of Consumer Prices (HICP).
Earlier, the asset displayed a responsive buying action after the US dollar index (DXY) reported a significant fall on Thursday. The DXY tumbled on failing to kiss the 23-year high at 105.79. Also, the US core Personal Consumption Expenditure (PCE) Price Index remained in line with the expectations. The economic data landed at 4.7%, in line with its estimates but lower than the former release of 4.9%.
The Federal Reserve (Fed) is elevating its interest rates from the last three monetary policy meetings and not even a minute impact has been recorded on the price pressures. This time, a slippage in the inflation indicator bolstered the hopes that the inflation rate will get contained.
In today’s session, the US ISM PMI will remain in the limelight. As per the market consensus, the economic data may fall to 55 from the prior release of 56.1.
On the eurozone front, the spotlight will remain on the eurozone HICP figures. The annual HICP may step up to 8.3% from the prior print of 8.1%. It is worth noting that the European Central Bank (ECB) has not elevated its interest rates yet despite the inflation rate stabilizing above 8%. More delay in the policy tightening process may enlarge the real income shock in Europe.