Euro reverses from two-day high, fade US soft CPI move
The Euro reversed course after reaching a two-day high of 1.1563, following the release of a benign US inflation report for July, which triggered a repricing for a less “hawkish” Federal Reserve, throughout 2026.
The Euro experienced a reversal following a two-day high of 1.1563, following a mild US inflation report for July. This prompted investors to reduce positions, anticipating a less aggressive Federal Reserve. The EUR/USD pair retreated to 1.1522, down 0.17%. The US CPI for July aligned with expectations, suggesting ongoing disinflation.
Germany's HICP remained stable at 2.8% in July, though energy prices continue to rise, influencing inflation. Eurozone inflation data, including Spain's release and EU industrial production, will be crucial. Technical analysis indicates a mildly bullish bias for EUR/USD, with support near 1.1514 and resistance at 1.1849.
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