EUR/USD maintains its upward tone on Wednesday, trading around 1.1575, though the pair continues to face resistance below the 1.1600 barrier. While the European Central Bank’s (ECB) warnings over financial stability risks have tempered risk appetite, optimism over a potential Federal Reserve rate cut in December is limiting any meaningful US Dollar recovery.
US data released on Tuesday showed Retail Sales rising less than expected in September, while Producer Price Index growth remained steady. Consumer Confidence also weakened as households grew more cautious about rising living costs and uncertain job prospects. These indicators strengthened expectations of near-term Fed rate cuts, placing additional downward pressure on the US Dollar.
On the geopolitical front, progress toward a Ukraine–Russia peace roadmap has supported market sentiment. US President Donald Trump confirmed that the initial peace framework has been refined with new input from both sides and announced that envoy Steve Witkoff will travel to meet Russian President Vladimir Putin next week. Positive signals from Ukrainian President Volodymyr Zelensky have further boosted confidence, adding support to the Euro.
Looking ahead, Wednesday’s US session will feature key data releases, including Durable Goods Orders and Initial Jobless Claims. Later, ECB board member Philip Lane and President Christine Lagarde are scheduled to address the press, which could offer further policy clues for the Eurozone.
