Euro Prepared for Potential Gains Amid French Elections.
The latest figures on the Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s key inflation metric, have calmed financial markets after a period of speculation. The PCE index showed no change in the past month, following a 0.3% rise in April. Annually, the PCE index increased by 2.6% up to May, slightly lower than April’s 2.7%.
Carol Schleif of BMO Family Office remarked that the market can relax as the PCE data confirmed economic stability and a steady decline in inflation. This information has increased the chances of the Federal Reserve reducing interest rates in September, with current predictions at 67%, up from 65% the previous day.
Despite this, market attention is now focused on the upcoming French elections, which could heavily influence the EUR/USD currency pair. Frances Cheung and Christopher Wong from OCBC indicate that unless the election results are unexpected, such as a strong performance from the Ensemble-Macron coalition, market reactions might trend downward.
UOB Group experts foresee the EUR/USD pair in a consolidation phase likely to continue for the next few weeks. Although a short-term increase to 1.0760 is possible, key support is expected at 1.0670, with resistance levels at 1.0730 and 1.0745.
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Sun Jun 22 2025 09:17:08 GMT+0000 (Coordinated Universal Time)
