Home›Forex›Major Pairs›Euro holds above 1.1500 as US inflation trims Fed rate…

Euro holds above 1.1500 as US inflation trims Fed rate bets

PPI cooled to 4.7% in headlines and 4.2% in core terms versus June, helping push September pricing toward a hold rather than a hike.

Reported · Written up by our desk · Major Pairs

The euro held firm above 1.1500 against the dollar as a softer US inflation picture reduced expectations for further Fed tightening, shifting trader sentiment toward a hold at the September 16 meeting, according to FXStreet.

US producer-side inflation reinforced the recent disinflation trend. The Producer Price Index cooled in both headline and core figures to 4.7% and 4.2%, respectively, compared with June, while investors also digested jobless claims that edged up to 209K above estimates.

As money markets recalibrated, FXStreet said odds for a year-end hike fell slightly, with December rate-hike pricing at 67%, down from about 70% the prior day. In Europe, attention also turned to Spain where inflation rose to 3.9%, the highest since May 2025.

FXStreet added that EUR/USD was trading around 1.1529 in sideways action, supported by technical levels around the 1.1465 moving average cluster and a reclaimed structure just below 1.1477, as markets awaited additional catalysts including euro area GDP data and the US retail sales release.

Latest closeEUR/USD 1.153 ▼0.1%

More like this

Sources