During Friday’s Asian session, the EURUSD Chart Technical Outlook currency pair garners traction around the week’s bottom, approximately in the 1.0525-1.0520 zone. Presently, spot rates are oscillating in the 1.0535-1.0540 domain, marking a modest ascent of roughly 0.10% on the day, seemingly decelerating the precipitous overnight pullback from its almost three-week pinnacle.
Indeed, Thursday saw the EUR/USD pair log its most significant daily downturn since early October. This occurred after the US consumer inflation metrics bolstered anticipations for an additional 2023 rate increment by the Federal Reserve, thereby rejuvenating the appetite for the US Dollar.
Both the principal and Core CPI statistics exceeded the Fed’s benchmark of 2%, fortifying the case for enhanced monetary constrictions. Consequently, there was a pronounced surge in US Treasury bond yields, sparking an extensive USD short-squaring momentum.