EUR/USD Forecast: Bulls encouraged as Euro holds above 1.1000

• EUR/USD went into a consolidation phase near 1.1000 early Friday.
• US PCE inflation data could drive the USD valuation in the American session.
• Thin trading conditions ahead of Christmas holiday could limit the pair’s action.

EUR/USD gathered bullish momentum and climbed above 1.1000 on Thursday as the US Dollar came under bearish pressure following the mixed data releases. The pair holds steady at around 1.1000 early Friday ahead of the Personal Consumption Expenditures (PCE) Price Index data from the US. 

The US Bureau of Economic Analysis (BEA) announced on Thursday that it revised the annualized third-quarter Gross Domestic Product (GDP) growth lower to 4.9% from 5.2%. The GDP Price Index in the same period was also lowered to 3.3% from 3.5%, showing that inflation had a smaller effect on the GDP growth than initially estimated. 

Although other data from the US revealed that there were 205,000 Initial Jobless Claims in the week ending December 16, compared to the market expectation of 215,000, the USD weakened against its rivals in the American session.