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EUR/USD holds near 1.1535 as traders await US CPI

The pair is trading below 1.1550 amid unusually low FX volatility, with investors also weighing renewed shipping concerns near the Strait of Hormuz.

Reported · Written up by our desk · Major Pairs

EUR/USD was steady near 1.1535 on Wednesday, hovering just under the 1.1550 area as FX volatility stayed unusually low and investors waited for the release of US Consumer Price Index (CPI) data to guide USD trading.

FXStreet said the euro saw only marginal support, after Eurozone inflation data showed Germany’s Harmonised Index of Consumer Prices (HICP) accelerating to 2.8% year over year in July from 2.4% in June, with energy inflation rising to 7.3% from 2.7%.

However, those gains were described as short lived, as US dollar rallies remained subdued ahead of July’s CPI expectations. The market consensus anticipates yearly CPI easing to 3.4% from 3.5% and core inflation slowing to 2.5% from 2.6%.

FXStreet also pointed to concerns around the US-Iran peace process, after reports of attacks on vessels attempting to cross the Straits of Hormuz and Bab el-Mandeb on Tuesday, as an additional factor weighing on the euro. Technical levels cited included capped bullish attempts near 1.1580 and a key downside focus around 1.1355 if 1.1500 and 1.1480 fail.

Latest closeEUR/USD 1.155 ▼0.1%

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