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Euro holds above 1.1450 as USD wavers after softer PPI
The dollar slipped near a four-week low after June PPI fell 0.3%, while US-Iran tensions and a higher oil complex added inflation worries that restrained EUR/USD.
EUR/USD steadied above 1.1450 in the Asian session as the US dollar struggled to find buyers, consolidating recent gains that pushed the pair to its highest level since June 18, according to FXStreet.
The US data backdrop weighed on USD support, with the US Bureau of Labor Statistics reporting that producer prices unexpectedly fell 0.3% in June. The softer June PPI followed a weak CPI release on Tuesday, prompting traders to scale back expectations for an immediate rate hike by the Federal Reserve.
FXStreet also pointed to heightened US-Iran tensions as a key counterweight for the euro. Fresh US airstrikes targeting Iranian missile and drone infrastructure were met with retaliatory attacks, and the US naval blockade of Iranian ports and closure of the Strait of Hormuz lifted crude prices, raising concerns about energy driven inflation.
With a mixed outlook, FXStreet said traders are now watching the US economic docket, including monthly Retail Sales, the Philly Fed Manufacturing Index, and Weekly Initial Jobless Claims, alongside speeches from FOMC members for further direction on USD demand and the next move in EUR/USD.
Latest closeWTI crude $80.18 ▲1.1%|EUR/USD 1.147 ▲0.8%