Neutral
EUR/USD tests 1.1485 amid US inflation slowdown and Middle East tensions
Over the past 24 hours, EUR/USD has been influenced by a combination of US inflation data and geopolitical developments. The pair reached the 1.1485 level, driven by weaker US inflation figures that dampened expectations for immediate Federal Reserve rate hikes. However, concerns over rising energy prices due to Middle East tensions have introduced volatility, leading to a modest pullback in the euro.
Key points
- US Producer Price Index (PPI) contracted in June, reducing expectations for near-term Fed rate hikes.
- Renewed Middle East tensions have led to higher energy prices, raising global inflation concerns and pressuring the euro.
- US Retail Sales met expectations, indicating stable consumer spending, while Jobless Claims beat forecasts, suggesting a resilient labor market.
Sources
AI-generated from public news sources. Not financial advice.
