• EUR/USD struggles as the US Dollar advances due to increasing caution surrounding the Fed’s rate cut decision in December.
• The stronger US PCE data indicated a solid growth in consumer spending in October.
• Eurozone HICP headline and core inflation are projected to show annualized increases in November.

EUR/USD edges lower to near 1.0550 during the Asian trading hours on Thursday. This downside of the pair could be attributed to the improved US Dollar (USD) amid the cautious mood surrounding the Federal Reserve’s (Fed) interest rate decision in December, following Wednesday's robust inflation data. Markets may witness thin trading due to the US Thanksgiving holiday.

This latest US inflation report indicated solid growth in consumer spending for October, but it also highlighted a stagnation in progress toward lowering inflation, keeping the Fed on alert. The US Personal Consumption Expenditures (PCE) Price Index increased by 2.3% year-over-year in October, up from 2.1% in September. Meanwhile, the core PCE Price Index, which excludes volatile food and energy prices, rose by 2.8%, slightly higher than the 2.7% recorded the previous month.