EUR/USD, GBP/USD, DXY Price Forecast: DXY Rebounds to $104.25; What’s Next?

Last Friday, the German Wholesale Price Index (WPI) came in at -0.3%, missing the forecasted 0.2%, reflecting weaker economic activity. Meanwhile, the French Final Consumer Price Index (CPI) met expectations at 0.1%, providing no surprises to the market.

In the U.S., Core Producer Price Index (PPI) rose by 0.4%, exceeding the expected 0.2%, while the headline PPI increased by 0.2%, beating the 0.1% forecast.

However, the University of Michigan’s Consumer Sentiment dropped to 66.0, below the expected 68.5, and inflation expectations fell to 2.9%, slightly below the previous 3.0%. These mixed signals have kept the Dollar Index relatively stable, closing at $104.28, up 0.13%.

Events Ahead

Looking ahead, the EUR/USD will be influenced by the Eurozone’s Industrial Production data, forecasted to decline by 0.9%. Additionally, Eurogroup meetings will likely shape sentiment around the euro.

In the U.S., the Empire State Manufacturing Index is anticipated to slightly improve to -5.5 from -6.0. The most significant event will be Fed Chair Jerome Powell’s speech, which could provide insights into the Federal Reserve’s future monetary policy direction.