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EUR/USD holds near 1.1430 as Eurozone inflation stays contained
Germany and France inflation readings came in with limited price pressure, while US dollar weakness kept EUR/USD from giving back Thursday gains.
EUR/USD traded flat near the 1.1430 area on Friday, supported by a weaker US dollar that helped the pair hold onto modest gains from Thursday.
FXStreet said the euro stayed under mixed pressure even after inflation data pointed to contained price dynamics in two large Eurozone economies. Germany’s CPI fell 0.3% month over month in June, with the annual rate unchanged at 2.3%, while the EU-harmonized HICP declined 0.2% MoM and rose 2.4% year over year. In France, EU-harmonized CPI fell 0.3% on the month and rose 2.0% from a year earlier.
The softer inflation backdrop could reduce pressure for the European Central Bank to remain aggressively restrictive, which may limit upside for the euro, FXStreet added.
Still, geopolitical uncertainty was also in focus, with FXStreet noting that Trump said Iran requested further negotiations and Washington agreed to continue talks, though he warned the ceasefire was “over.” Renewed US-Iran tensions may support safe-haven demand for the greenback, keeping EUR/USD gains restrained as the pair stays capped by nearby resistance levels around 1.1442 to 1.1461.
Latest closeEUR/USD 1.144 ▲0.3%