EUR/USD eyes upside above 1.0250 as DXY weakens broadly on recession worries, Fed buzz

• EUR/USD is eyeing more upside after overstepping the barricade of 1.0250.
• Escalating recession worries have weighed pressure on the DXY.
• The Fed is likely to hike interest rates by 75 bps as a  1% rate hike is out of the picture.

The EUR/USD pair has sensed a mild selling pressure while attempting an upside move above the critical hurdle of 1.0250. The asset is expected to surpass the same as the US dollar index (DXY) has entered into a negative trajectory.

The DXY is likely to surrender the cushion of 106.00 as the US economic events are bolstering the odds of a recession in the economy.  Initial Jobless Claims have reached a seven-month high of 250k and major US tech companies are hinting at a halt on the recruitment process. On that, tech giant Google has halted its recruitment process from the past two weeks and other big techs are considering a lay-off program.

Accelerating jobless benefits and a steep reduction in employment generation will result in a slump in the overall demand in an already high inflation market. Also, this has vanished the option of 100 basis points (bps) interest rate hike by the Federal Reserve (Fed) and a rate hike of 75 bps is in the limelight.

On the eurozone front, investors are awaiting the release of the Gross Domestic Product (GDP) numbers, which are due on Friday. A preliminary estimate for the economic data is 3.4%, significantly lower than the prior release of 5.4%. Also, the quarterly economic data will tumble to 0.1% vs. 0.6% released earlier. Apart from that, the eurozone Harmonized Index of Consumer Prices (HICP) holds significant importance. The eurozone inflation is seen at 8.7%, 10 bps higher than the prior close.