EUR/USD and GBP/USD eye gains as US stocks test records on PPI data
EUR/USD and GBP/USD showed strength as cooling US Producer Price Index data pushed equity markets toward record highs, reinforcing expectations for Federal Reserve rate cuts. The Nasdaq 100 futures rallied alongside major US tech stocks including Microsoft, creating a risk-on environment supportive of European currencies. EUR/USD traded near 1.1050 while GBP/USD approached 1.3150, both benefiting from dollar weakness. The PPI data adds to evidence of moderating US inflation, reducing the Fed's hawkish stance relative to European central banks. Technical analysis shows EUR/USD facing resistance at 1.1100, with momentum indicators turning bullish. GBP/USD must clear 1.3175 to confirm its uptrend continuation. The combination of softer inflation data and record equity levels suggests further dollar weakness ahead, particularly if upcoming CPI data confirms the disinflationary trend.
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