Euro remains little changed as US CPI fails to surprise the markets

The Euro remained relatively unchanged on Wednesday as the US Consumer Price Index (CPI) failed to surprise markets. The EUR/USD pair traded around 1.1550, up a modest 0.08% on the day. US inflation data showed the annualized CPI slowing to 3.4% YoY in July, down from 3.5% in June, with a monthly rise of 0.1%. Core CPI, excluding food and energy, rose 0.2% MoM and 2.5% YoY.

All figures aligned with market expectations, leaving the US Dollar relatively subdued. In Europe, German inflation, measured by the HICP, rose 2.8% YoY in July, driven by energy prices. However, the Euro's gains were limited by concerns over the Middle East geopolitical situation, particularly the US-Iran peace process. Technical analysis suggests that EUR/USD may test resistance at 1.1560 before facing a higher hurdle at 1.1581.

Meanwhile, USD/JPY tested the August monthly low, and AUD/USD hovered near its May peak, awaiting US Nonfarm Payrolls data for further Fed policy cues. Gold fell after strong US job data, and the US diesel crack spread surged above $100 per barrel.