EUR/USD holds above 1.0850 on weaker US Dollar, eyes on US PCE data

• EUR/USD edges higher to around 1.0855 in Thursday's early Asian session. 
• Private sector employment increased by 233,000 jobs in October. 
• The Eurozone HICP and the US PCE inflation data will be in the spotlight on Thursday. 

The EUR/USD pair attracts some buyers to near 1.0855 during the early Asian session on Thursday. The weakening of the US Dollar (USD) and the better-than-expected Eurozone flash Gross Domestic Product (GDP) for the third quarter provides some support to the major pair.

The US economy grew at an annualised rate of 2.8% in the third quarter (Q3), slightly lower than the 3% estimated by economists. Meanwhile, private sector employment rose by 233,000 jobs in October, compared to September's reading of 159,000 (revised from 143,000), according to the October ADP National Employment Report. 

The US Dollar index (DXY), which measures the USD against six major rivals, retreats to weekly lows of 104.09 after reaching the highest since July 30 at 104.63 on Tuesday. Uto Shinohara, senior investment strategist at Mesirow Currency Management in Chicago, said the markets expect a 25 basis points (bps) cut in the November meeting, but another cut in December remains a coin flip.

The Eurozone economy expanded 0.4% QoQ in the third quarter of 2024, according to Eurostat's preliminary estimates, stronger than the 0.2% expected. On an annual basis, Eurozone GDP grew by 0.9% in Q3, above the market consensus of 0.8%. 

Investors will keep an eye on the Eurozone Harmonized Index of Consumer Prices (HICP) and the US Personal Consumption Expenditures (PCE) - Price Index data, which are due later on Thursday.