No significant events are expected today.

According to data from the U.S. Bureau of Economic Analysis, the Personal Consumption Expenditures (PCE) price index in July matched expectations. The overall PCE index rose by 2.6% year-on-year, while the core PCE index, which excludes more volatile food and energy components, increased by 2.9% for the same reporting period. Despite high inflation figures, traders continue to increase their bets on a Fed rate cut this month.

Federal Reserve Chair Jerome Powell, in his speech at Jackson Hole earlier this month, hinted that the Fed is ready to ease policy. Fed member Christopher Waller also suggested that a rate cut is appropriate, stating that he would consider a more significant move.

Traders are now pricing in almost an 89% probability of a 25 basis point (bps) Fed rate cut at the September monetary policy meeting, compared to 85% before the U.S. PCE data release.

The ongoing conflict between Russia and Ukraine means higher energy costs and increases geopolitical uncertainty in the eurozone, which typically puts some pressure on the euro.

Recommendations: BUY 1.1745, SL 1.1675, TP 1.1860.