EUR/USD is posting moderate gains on Friday, trading near 1.1675 at the time of writing on Friday from 1.1645 daily lows, but remains on track for a 0.55% weekly decline. In the United States (US), a batch of upbeat macroeconomic figures eased concerns about an economic downturn on Thursday, while in Europe, data have been uninspiring this week. To make matters worse, US President Donald Trump rattled markets with a new round of tariffs.

Data from the US Bureau of Economic Analysis revealed that the Gross Domestic Product (GDP) grew at a stronger pace than previously estimated in the second quarter. The good news came alongside a solid increase in Durable Goods Orders in August and an unexpected decline in US weekly Initial Jobless Claims, which prompted investors to scale back the Federal Reserve's (Fed) interest rate cut bets and provided a fresh boost to the US Dollar (USD).

Apart from that, President Trump announced new tariffs on heavy trucks, branded drugs, and kitchen cabinets, which resurfaced fears about global trade uncertainty and hammered risk appetite during the Asian session.

On Friday, the main focus is on the Personal Consumption Expenditures (PCE) Price Index for further clues about the Fed's next monetary policy decisions. The market is bracing for a moderate increase in headline PCE inflation. Anything below the 3% line is likely to keep hopes of Fed easing alive and allow for some recovery in risk appetite.

Source: fxstreet