EUR/USD Sees Relief Bounce After U.S. Core PCE Rise Cuts Fed Hike Odds

The EUR/USD pair touched its lowest level since May 2025 on Tuesday at 1.1312, after a 2.5% drop against the dollar in September.

This week's macro data showed some relief for the euro, as the U.S. core PCE rose 3.0% annually against a 3.3% forecast, cutting October Fed hike odds to 37% from 47%.

German inflation climbed to 3.3% in September, driven by 14.9% energy inflation.

The euro is oversold with a 14-day RSI of 24, its lowest reading since March 13, and this combination favors a relief bounce toward 1.1400 and 1.1450 in the coming sessions.