**BREAKING: EUR/USD Surges on Softer US Inflation Data**
EUR/USD rallied 0.41% to 1.1466 on Wednesday after US inflation figures came in below market expectations, triggering a sharp selloff in the US dollar. The weaker-than-anticipated inflation print is reinforcing trader expectations that the Federal Reserve will adopt a less hawkish monetary policy stance as the year draws to a close.
The currency pair is now approaching the 1.1600 level, with technical indicators showing the Relative Strength Index has shifted into bullish territory. This technical breakout aligns with the fundamental shift in Fed policy expectations, creating a dual catalyst for euro strength against the dollar.
Traders and forex brokers should prepare for increased volatility as the pair tests key resistance levels. The softer inflation data suggests the Fed’s aggressive rate hiking cycle may be nearing its end, which could sustain downward pressure on the dollar across major pairs.
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FXnCO Insight
** Traders should monitor 1.1600 as a critical resistance level for EUR/USD, with a confirmed break potentially opening the door to extended euro gains toward 1.1700.
Source: FXStreet