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EUR/USD holds loses around 1.1650 ahead of Eurozone PMI data
Thursday, 21 August 2025 10:56 WIB | EUR/USD |EuroDolar

EUR/USD edges lower after registering slight gains in the previous session, trading around 1.1640 during the Asian hours on Thursday. The Euro (EUR) depreciates against the US Dollar (USD) ahead of HCOB Purchasing Managers' Index (PMI) data from Germany and the Eurozone.

Germany's HCOB PMI data is scheduled to be released on Thursday at 07:30 GMT, with the Services PMI expected at 50.3. The Eurozone HCOB PMIs follow at 08:00 GMT, with forecasts pointing to 49.5 for Manufacturing and 50.6 for Services.

On Wednesday, the Eurostat reported that the European Union (EU) Harmonized Index of Consumer Prices (HICP) climbed 2% year-over-year as expected in July. Core HICP figures came at 2.3% YoY as expected and unchanged from June's print.

ECB's President Christine Lagarde stated that recent trade deals have alleviated but not eliminated uncertainty. Lagarde also added that the European economy remains resilient in the face of a challenging global environment.

The EUR/USD pair loses ground as the US Dollar (USD) receives support after the release of the Federal Open Market Committee's (FOMC) Minutes for the July 29-30 meeting on Wednesday. The minutes indicated that most Federal Reserve (Fed) officials emphasized that inflation risks outweighed labor market concerns during last month's meeting, as tariffs deepened divisions among policymakers. Most policymakers considered it appropriate to maintain the benchmark interest rate in the 4.25%–4.50% range.

The CME FedWatch tool suggests that Fed funds futures traders are currently pricing in an 82% chance of a rate cut in September. Traders are awaiting Fed Chair Jerome Powell's speech at the Jackson Hole Symposium in Wyoming on Friday, which may provide clues about the September policy decision.

Source: FXstreet

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