EUR/USD steadies around 1.1700 ahead of Q2 Eurozone GDP, US PPI data

• EUR/USD holds ground ahead of the release of Eurozone Gross Domestic Product data for the second quarter.
• CME's FedWatch tool indicates pricing in a nearly 94% chance of a 25 basis point rate cut in September.
• US Treasury Secretary Scott Bessent believes that the Fed could implement a 50-basis-point rate cut in September.

EUR/USD moves little after two days of losses as the US Dollar (USD) experiences a technical recovery, trading around 1.1700 during the Asian hours on Thursday. Traders await Eurozone Gross Domestic Product (GDP) data for the second quarter due later in the day. Focus will shift toward the US Producer Price Index (PPI) data and weekly Initial Jobless Claims later in the North American session.

However, the Greenback may lose its ground amid rising odds of further rate cuts by the US Federal Reserve (Fed). CME's FedWatch tool indicates that Fed funds futures traders are now pricing in nearly a 94% chance of a 25 basis point (bps) interest rate cut at the September meeting.

US Treasury Secretary Scott Bessent said in an interview on Wednesday that short-term Fed interest rates should be 1.5-1.75% lower than the current benchmark rate at an effective 4.33%. Bessent added that there is a good chance that the central bank could opt for a 50 basis point rate cut in September.

US President Donald Trump shared his "paper calculation" that Fed interest rates should be at or near 1%. Trump also noted interest rates should be three or four points lower. Interest rates are just a paper calculation, he added.

The EUR/USD pair gained ground as the European Central Bank (ECB) is anticipated to end its easing cycle in July after eight cuts over the past year, leaving borrowing costs at their lowest since November 2022. However, traders still expect another cut before year-end.