• Euro tracking sideways with a softer undertone as dollar firms following U.S. PCE

• Core metrics were in-line, headline a touch hotter than f/c, lifting USD and U.S. yields

• Euro shrugged off hawkish ECB Schnabel remarks. Sept hike priced in, so rhetoric does little to move the needle

• Initial support at the 200-hour MA cluster (1.1640), keeping the pair supported for now

• Flow dynamics set to shift the dollar's favour on Thursday, increasing downside risk

• A clean break through 1.1640 would open 1.1615, a move below that likely brings last week's low into view (1.1557)
EURUSD hourly chart


Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))