EUR/USD forecast: Global PMIs and Core PCE in focus

After years of sticking rigidly to fiscal orthodoxy, Berlin is now opening the taps. The newly approved legislation paves the way for a €500 billion fund earmarked for infrastructure investment while also loosening borrowing restrictions to facilitate a sharp rise in defence spending. This is something that is expected to boost GDP and potentially keep inflation elevated, providing a positive backdrop to the medium term EUR/USD forecast.