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EUR/USD rebounds from 1.1600 despite market caution ahead of US PPI data
Wednesday, 16 July 2025 11:27 WIB | EUR/USD |EuroDolar

EUR/USD halts its five-day losing streak, trading around 1.1610 during the Asian hours on Wednesday. The pair appreciates despite the stable US Dollar (USD), driven by traders' caution ahead of the upcoming US Producer Price Index (PPI) later on Wednesday. The Fed Beige Book and Industrial Production will also be eyed.

However, the US Dollar may regain its ground as the US inflation report for June reignited concerns about prolonged high Federal Reserve (Fed) interest rates.

The US Consumer Price Index (CPI) rose 2.7% year-over-year in June, matching market expectations. Core CPI came in at 2.9%, just below the 3.0% forecast but still notably above the Federal Reserve's 2% target.

The market sentiment remains cautious amid rising uncertainty surrounding the tariff outlook. US President Donald Trump sent notified 25 countries of new tariff rates set to take effect on August 1st, including major trading partners Canada, Mexico, and the European Union (EU).

However, Trump expressed willingness to further engage in trade discussions, indicating the possibility of negotiating with the European Union (EU) and other key trading partners.

Source: FXStreet

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