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Euro trades lower ahead of US CPI data
EUR/USD was around 1.1534 as investors awaited July US CPI, with forecasts pointing to easing headline and core inflation.
The euro edged lower against the US dollar in early European trade, with EUR/USD around 1.1534 as markets turned cautious ahead of the release of US CPI data for July, scheduled for 12:30 GMT.
FXStreet said the US Dollar Index, which tracks the greenback versus six major currencies, was slightly higher near 99.90. Expectations call for annual headline CPI to slow to 3.4% from 3.5% in June, and core CPI to fall to 2.5% from 2.6%.
On a monthly basis, forecasts see headline CPI up 0.1% and core CPI up 0.2%. FXStreet noted that cooling price pressure could reduce fears of further Federal Reserve rate hikes after weak US Nonfarm Payrolls data.
The euro also traded cautiously due to rising energy prices tied to restricted oil supply amid Middle East tensions, a factor that could be negative for the currency because the eurozone relies heavily on energy imports. FXStreet cited TD Securities, which described July payrolls as surprising sharply to the downside with -23k job gains and negative revisions subtracting 103k jobs from May and June.
Latest closeEUR/USD 1.155 ▼0.1%|Dollar index 99.81 ▲0.0%