Euro Surges to Six-Week High as Dollar Faces Pressure from Japan

The US Dollar (USD) continues to face pressure as traders digest the latest batch of economic data following the Federal Reserve's decision to keep interest rates unchanged at 3.50%-3.75%. The Euro (EUR), on the other hand, has reached a six-week high against the USD.

The EUR/USD pair currently trades around 1.1534, its highest level since June 17, as the Greenback remains under pressure due to suspected intervention by Japanese authorities to stem the Yen's weakness.

The US economic data released on Thursday showed that the country's economy grew at an annualized rate of 1.5% in the second quarter, below both the 2.1% market forecast and the 2.1% pace recorded in the first quarter. Meanwhile, the Federal Reserve's preferred measure of underlying inflation cooled slightly in June.

The Core PCE Price Index rose 0.1% MoM, below the 0.2% forecast and down from 0.3% in May. On an annual basis, core inflation eased to 3.3% from 3.4%, matching expectations.