EUR/USD Supported by Softer US PCE Data, Fed Rate-HHike Bets Trimmed

The Euro is finding support against the US Dollar following softer US PCE data, which has led traders to trim expectations for further Fed rate hikes. This dynamic is narrowing interest rate differentials and boosting EUR/USD, which holds modest gains. Technical patterns show resilience, and central bank policy divergence remains a key driver. The outlook is constructive for EUR/USD, but vigilance on data and central bank rhetoric is crucial.