EUR/USD posts minimal movement after US inflation data

The BEA revealed that Core PCE came at 0.3% MoM and at 2.8% YoY, with both figures aligned with the market consensus. Headline PCE figures rose by 0.3% MoM lower than expected and January’s data. In the 12 months to February, PCE came at 2.5%, as foreseen, but a tenth higher than the prior month’s data.

Other data showed that Wholesale Inventories Advanced for February came at 0.5% MoM up from -0.2% in the previous month.

Thin liquidity conditions witnessed the EUR/USD push below 1.0780 before breaking above 1.0790. Buyers are eyeing a clear break above 1.0800, though they will face some intraday resistance, as depicted by the hourly chart, with the 50-Simple Moving Average (SMA) standing at 1.0800.

In addition, traders will watch San Francisco’s Fed President Mary Daly's speech at 15:20 GMT, followed by Fed Chair Jerome Powell's speech at 15:30 GMT.

According to BBH analysts, Fed Chair Jerome Powell's speech will be important. They noted, “Other Fed speakers have tilted hawkish after last week’s FOMC meeting, and markets will be watching to see if Powell follows suit or maintains the dovish tone from his press conference. With Powell, it’s always a coin toss but as we’ve said countless times before, the data will ultimately decide the timing of the first cut. As things stand, odds of a cut June 12 have fallen to 66% after rising to 85% post-FOMC.”