Euro on 7 day winning streak

The EUR/USD pair extends its winning streak for the seventh consecutive day on Thursday as the US Dollar (USD) weakens despite market expectations of prolonged higher interest rates by the Federal Reserve (Fed). The Federal Open Market Committee (FOMC) Minutes reflected policymakers' concerns about early interest rate cuts, suggesting that policy easing will not begin in the upcoming monetary meetings.

In Europe, Eurozone and German Purchasing Managers Index (PMI) data posted mixed figures for February. The preliminary Eurozone and German Services PMIs rose higher than the expected figures, while Manufacturing PMIs were weaker than market expectations. Traders’ focus shifts to the United States to observe S&P Global PMI figures, weekly Initial Jobless Claims, and Existing Home Sales later in the North American session.

The US Dollar Index (DXY) declines to 103.70, with the 2-year and 10-year yields on US bonds at 4.65% and 4.31%, respectively, at the time of writing. The FOMC Meeting Minutes for January emphasized the need for additional evidence of disinflation to mitigate concerns of upside inflation risks. This cautious stance comes after hot figures from the Consumer Price Index (CPI) and Producer Price Index (PPI) from January, along with robust employment data from February.