EUR/USD edges up to near 1.1800, outlook remains grim amid firm US Dollar

EUR/USD ticks higher to near 1.1800 while its outlook remains uncertain.
Fed officials are not in a hurry to cut interest rates, FOMC minutes showed.
Investors await preliminary US Q4 GDP and Eurozone/US PMI data for February.

The EUR/USD pair trades marginally higher to near 1.1800 during the European trading session on Thursday. The major currency pair ticks higher while the US Dollar (USD) holds onto Wednesday’s gains, which were driven by balanced Federal Open Market Committee (FOMC) minutes of the January policy meeting.

As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, clings to gains near a fresh weekly high of 97.70 posted on Wednesday.

Federal Reserve (Fed) minutes showed the previous day that officials are not in a rush for interest rate cuts, with the United States (US) inflation remaining above the central bank’s 2% target for a longer period. “Several policymakers reportedly said further rate cuts would likely be appropriate if inflation declined in line with their expectations,” FOMC Minutes showed.

Going forward, the major trigger for the US Dollar will be the preliminary Q4 Gross Domestic Product (GDP) data, which will be released on Friday. The US GDP growth is estimated to come in at 3% Year-on-Year (YoY), lower than the previous reading of 4.4%.

On Friday, investors will also focus on the Eurozone/US flash private Purchasing Managers’ Index (PMI) data for February. PMI reports are expected to show that the overall business activity grew at a faster pace in both the US and the Old Continent.

In the Eurozone, investors await the announcement of European Central Bank (ECB) President Christine Lagarde’s successor, who resigned this week.