Euro Edges Higher as US Dollar Weakens on Hawkish Fed Remarks
The EUR/USD pair gained strength on Monday morning, reaching around 1.1590 during Asian trading hours, as the US Dollar edged lower against the Euro.
This move comes despite hawkish remarks from Federal Reserve Chair Kevin Warsh over the weekend at the Jackson Hole symposium, where he stated that policymakers would have work to do if they were not confident cost-of-living pressures were easing for Americans.
Warsh emphasized that the Fed must be confident that underlying inflation is moving toward their 2% PCE objective or else they will take action. He added that recent better-than-expected summer inflation prints do not signal a meaningful change in underlying trends, and that the Fed's predominant focus should be on prices.
The Eurozone is also awaiting the release of German CPI inflation data later on Monday, which is expected to show an increase to 2.9% YoY in August from 2.8% in July. If this report shows a hotter-than-expected outcome, it could boost the shared currency in the near term.