• EUR/USD edges lower due to market caution ahead of US Personal Consumption Expenditures data release on Friday.
• Fed Governor Lisa Cook has expressed support for last week's 50 basis point rate cut, pointing to heightened "downside risks" to employment.
• Traders await speeches from ECB’s Philip Lane and Piero Cipollone scheduled later in the day.

EUR/USD retraces its recent gains registered in the previous session, trading around 1.1170 during the Asian session on Friday. The US Dollar (USD) receives support as traders adopt caution ahead of the US Personal Consumption Expenditures (PCE) Price Index data for August. The Fed’s preferred inflation indicator is scheduled to be released later in the North American session.

On the data front, the US Gross Domestic Product Annualized increased at a rate of 3.0% in the second quarter, as estimated, according to the US Bureau of Economic Analysis (BEA) on Thursday. Meanwhile, the GDP Price Index rose 2.5% in the second quarter.

Additionally, US Initial Jobless Claims for the week ending September 20 were reported at 218K, according to the US Department of Labor (DoL). This figure came in below the initial consensus of 225K and was lower than the previous week's revised number of 222K (previously reported as 219K).

However, the US Dollar might have received downward pressure following the dovish remarks from the US Federal Reserve (Fed) officials. Fed Governor Lisa Cook stated on Thursday that she supported last week's 50 basis point (bps) interest rate cut, citing increased "downside risks" to employment, according to Reuters.