Euro Holds Steady as Markets Await Crucial US Inflation Data

The euro has maintained its stability above $1.1650 against the US dollar on Friday as traders wait for the release of the latest US Personal Consumption Expenditures (PCE) price index.

This inflation gauge, preferred by the Federal Reserve, will provide crucial insights into consumer prices and shape monetary policy expectations.

Analysts project a year-over-year increase of around 2.5% for the core PCE index, which excludes volatile food and energy prices.

A higher-than-expected reading could reinforce the Fed's hawkish stance, potentially boosting the dollar, while a softer number might ease pressure on the greenback.