Euro Slips Against US Dollar After Stronger-Than-Expected PCE Inflation Data

The euro has fallen against the US dollar after the release of the US Personal Consumption Expenditures (PCE) price index, which came in above market expectations.

This has led to a reassessment of the Federal Reserve's policy path, with the Fed expected to maintain higher interest rates for longer due to persistent inflation.

Danske Bank analysts noted that the data reinforces their view that the Fed will delay any potential easing cycle, while the European Central Bank may consider rate cuts to support a weaker eurozone economy.