{"id":385436,"date":"2025-03-28T18:56:20","date_gmt":"2025-03-28T13:26:20","guid":{"rendered":"https:\/\/dripp.zone\/news\/eur-usd-gains-ground-despite-hotter-than-expected-us-core-pce-inflation-crypto-news\/"},"modified":"2025-03-28T19:00:11","modified_gmt":"2025-03-28T13:30:11","slug":"eur-usd-gains-ground-despite-hotter-than-expected-us-core-pce-inflation-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/eur-usd-gains-ground-despite-hotter-than-expected-us-core-pce-inflation-crypto-news\/","title":{"rendered":"EUR\/USD gains ground despite hotter-than-expected US core PCE Inflation &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div id=\"fxs_article_content\">\n<ul>\n<li><strong>EUR\/USD rebounds from the intraday low of 1.0765\u00a0after the release of the US PCE inflation data for February.<\/strong><\/li>\n<li><strong>The European Commission prepares for retaliatory measures against US President Trump\u2019s auto tariffs.<\/strong><\/li>\n<li><strong>Inflation in Spain and France grew at a moderate pace in March.<\/strong><\/li>\n<\/ul>\n<p>EUR\/USD finds cushion near\u00a01.0765 during North American\u00a0trading hours on Friday after the release of the\u00a0United States (US) Personal Consumption Expenditures Price Index (PCE)\u00a0for February. The\u00a0report\u00a0showed that the core PCE inflation &#8211; which excludes volatile foods and energy prices &#8211; rose at a faster pace of 2.8% year-on-year compared to estimates of 2.7% and January&#8217;s reading of 2.6%. On month, the underlying inflation data grew by 0.4%, faster than expectations and the former release of 0.3%.<\/p>\n<p>The significance of the core PCE inflation data is high as it is closely tracked by Federal Reserve (Fed) officials\u00a0to gauge inflationary pressures. Higher-than-expected growth in the PCE inflation ahead of the announcement of\u00a0impending reciprocal tariffs by US\u00a0President Donald Trump on April 2 is\u00a0expected to force traders to boost expectations supporting the Fed to keep interest rates in the current range of 4.25%-4.50% for a longer period.<\/p>\n<p>The imposition of reciprocal tariffs by US President Trump is expected to weigh on economic growth and boost inflationary pressures across the globe, including the US. Trump also announced 25% tariffs on autos entering the US on Wednesday, which will become effective from April 2. Trump\u2019s auto levy has resulted in global mayhem in automobile and auto-ancillary manufacturing companies&#8217; stocks.<\/p>\n<p>Federal Reserve (Fed) officials have been expressing\u00a0concerns over a resurgence in price pressures in the near term due to Trump\u2019s tariff agenda. &#8220;It looks inevitable that tariffs are going to increase inflation in the near term,&#8221; Boston Fed Bank President Susan Collins said at an event on Thursday. Collins added that it seems more likely than not right now the increase in inflation will be \u201cshort-lived,\u201d but warned of \u201cpotential risks\u201d that higher price pressures could be persistent in nature. On the interest rate outlook, Collins said that holding them at their current levels for longer \u201cis likely to be appropriate\u201d. However, the Fed should show &#8220;active patience&#8221; and stand ready to be \u201cflexible\u201d.<\/p>\n<h2 class=\"fxs_headline_medium\">Daily digest market movers: EUR\/USD declines on potential US-EU trade war<\/h2>\n<ul>\n<li>EUR\/USD trades lower\u00a0amid deepening uncertainty over the Euro&#8217;s (EUR) <a rel=\"nofollow\" target=\"_blank\" data-fxs-autoanchor=\"\" href=\"https:\/\/www.fxstreet.com\/rates-charts\/forecast\">outlook<\/a> due to potential risks of a trade war between the Eurozone and the United States (US). The European Commission (EC) plans to announce retaliatory tariffs on the US for imposing a 25% blanket levy on autos. German carmakers dispatch 13% of their total auto exports to the US, and a 25% tariff on autos could make their cars less competitive in the global market.<\/li>\n<li>\u201cWe regret 25% auto tariffs and a new suite of measures coming on April 2, but we are preparing for all of these,\u201d EC spokesman Olof Gill said on Thursday. When asked about the degree and timing of retaliatory measures, Gill refrained from guiding exact timings but assured that it will be \u201ctimely, robust, well calibrated and will achieve the intended impact&#8221;.<\/li>\n<li>Financial market participants and German leaders warned that auto tariffs would be a lose-lose situation for both countries. \u201cTrump\u2019s decision is wrong,&#8221; German Chancellor Olaf Scholz said on Thursday and added that the US has chosen a path at whose end \u201clie only losers\u201d since tariffs and isolation hurt prosperity \u201cfor everyone\u201d.<\/li>\n<li>Meanwhile, European Central Bank (ECB) officials expect Trump\u2019s tariff agenda will hurt the Eurozone economic growth and boost inflationary pressures in the near term. ECB Vice President Luis de Guindos said that the impact of tariffs on inflation will be temporary, but it will be persistent on growth.\u00a0&#8220;For growth, trade is extremely detrimental,&#8221; de Guindos said and added, the &#8220;worst outcome is a vicious circle of tariffs\/retaliation.&#8221; On the monetary policy guidance, de Guindos said,\u00a0&#8220;it is very difficult to say what ECB will do in April.&#8221;<\/li>\n<li>On the economic front, France and Spain&#8217;s March preliminary inflation data has shown that price pressures rose at a slower-than-expected pace. In 12 months to March, France\u2019s Consumer Price Index (CPI) (EU Norm) rose steadily by 0.9%, slower than estimates of 1.1%. In the same period, Spain\u2019s Harmonized Index of Consumer Prices (HICP) grew at a slower pace of 2.2%, compared to the prior release of 2.9%.<\/li>\n<\/ul>\n<h2 class=\"fxs_headline_medium\">Technical Analysis: EUR\/USD struggles around 1.0800<\/h2>\n<p><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/editorial.fxsstatic.com\/miscelaneous\/_EUR_USD_2025-03-28_14-40-09-638787527571465635.png\" target=\"_blank\"><\/a><\/p>\n<p>EUR\/USD drops to near 1.0775 on Friday but continues to hold the 20-day Exponential Moving Average (EMA), which trades around 1.0760.<\/p>\n<p>The 14-day Relative Strength Index (RSI) cools down below 60.00, suggesting that the bullish momentum is over, but the upside bias is intact.<\/p>\n<p>Looking down, the December 6 high of 1.0630 will act as the major support zone for the pair. Conversely, the psychological level of 1.1000 will be the key barrier for <a rel=\"nofollow\" target=\"_blank\" data-fxs-autoanchor=\"\" href=\"https:\/\/www.fxstreet.com\/currencies\/eurusd\">the Euro<\/a> bulls.<\/p>\n<p>\u00a0<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>EUR\/USD rebounds from the intraday low of 1.0765\u00a0after the release of the US PCE inflation data for February. The European Commission prepares for retaliatory measures against US President Trump\u2019s auto tariffs. Inflation in Spain and France grew at a moderate pace in March. EUR\/USD finds cushion near\u00a01.0765 during North American\u00a0trading hours on Friday after the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":372970,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,825,433,366,255,250,252,247,253,249,5212,3206,256,254],"class_list":["post-385436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-ecb","tag-eurusd","tag-fed","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-seo","tag-tradewar","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/385436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=385436"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/385436\/revisions"}],"predecessor-version":[{"id":385437,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/385436\/revisions\/385437"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/372970"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=385436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=385436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=385436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}