The EUR/USD opened the New York session near 1.0705, briefly dipping to 1.0685 before climbing to 1.0724. The decline in US yields and the US dollar followed the release of weekly jobless claims, final Q1 GDP, and durable goods data. Additionally, rallies in equities and gold added pressure on the US dollar, which supported the EUR/USD.

However, the US dollar strengthened, and stocks dipped after comments from the Federal Reserve's Bostic, causing USD/CNH to rally. This led to EUR/USD falling back below the 10-day moving average, nearing 1.0700, with a late-day gain of only +0.24%. Technical indicators lean bearish, with a consolidation phase persisting and the monthly RSI falling. The key risk on Friday is the US May PCE report and its impact on Federal Reserve policy. An above-estimate result could increase yields, strengthen the US dollar, and weaken the EUR/USD. The USD pared some of its losses ahead of the PCE data, with the yen hovering near 161.

Market Briefs:

• Fed's Bostic indicated that inflation is moving in the 'right direction' and foresees one rate cut in Q4.
• Bostic also mentioned he has penciled in four quarter-percentage-point rate cuts for 2025, describing the Fed's approach as 'on a long-term arc'.
• He noted that GDP and job market data suggest an 'orderly deceleration' in economic activity that will balance supply and demand and lower inflation.
• Fed's Bowman stated that it is not yet time to cut rates until there is clearer evidence of inflation ebbing.