{
  "id": 4534461,
  "title": "Euro edges higher to near 1.1600 ahead of German CPI inflation release",
  "url": "https://urgent.news/2026/08/31/euro-edges-higher-to-near-1-1600-ahead-of-german-cpi-inflation-release",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-31T00:51:37.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/euro-edges-higher-to-near-11600-ahead-of-german-cpi-inflation-release-202608310051"
  },
  "original_language": "en",
  "account": "The EUR/USD pair gained strength, reaching approximately 1.1590 early in Asian trading on Monday. Despite Federal Reserve Chair Kevin Warsh's hawkish remarks, the US Dollar (USD) dropped against the Euro (EUR). Traders are expected to focus on Germany's preliminary Consumer Price Index (CPI) inflation data, released later on Monday. Warsh stated that policymakers will have to work if they are not confident that cost-of-living pressures are easing for Americans. He emphasized that the Fed must be confident that underlying inflation moves to its target at a sufficient rate. The Fed's next rate decision is scheduled for September 15-16, with markets currently pricing in a 57.5% chance of at least a 25 basis points (bps) rate hike next month, up from 35% before the speech. German CPI is forecasted to increase to 2.9% YoY in August, up from 2.8% in July, while the Harmonized Index of Consumer Prices (HICP) is expected to rise by 3.0% YoY in August, compared to 2.8% previously. If the report indicates a stronger-than-anticipated outcome, it could support the Euro in the near term. Scotiabank analysts noted that this week's data has confirmed the need for the ECB to adopt a more hawkish stance, with Governing Council member Isabel Schnabel flagging upside risks to inflation from energy prices and growth, and signaling an expectation of a 25bps hike in September, alongside continued tightening. Warsh's speech was notably more hawkish, with an FXS Speechtracker score of 7.4, compared to his historical average of 6.5, indicating growing concern that underlying inflation may not have convincingly moved towards the Fed's 2% PCE objective. Warsh's insistence on being confident that underlying inflation is moving towards the objective, or the Fed will have work to do, combined with the view that financial conditions are not restrictive and credit markets show no signs of policy restraint, points to a bias towards further tightening if price data do not improve significantly. Warsh's emphasis that recent better-than-expected summer inflation prints do not signal a meaningful change in underlying trends, and the focus remains on prices, reinforces a cautious approach to inflation risks, which is supportive of the Dollar on balance.",
  "summary": "The EUR/USD pair gathers strength to around 1.1590 during the early Asian trading hours on Monday. The US Dollar (USD) edges lower against the Euro (EUR) despite hawkish remarks from Federal Reserve (Fed) Chair Kevin Warsh.",
  "key_points": [
    "Euro strengthens to near 1.1600 ahead of German CPI release",
    "Fed Chair Kevin Warsh's hawkish remarks cause USD drop",
    "German CPI expected to rise to 2.9% YoY in August"
  ],
  "editors_take": "A stronger-than-expected German CPI inflation report could support the Euro, while Federal Reserve Chair Warsh's hawkish remarks suggest further US rate hikes, maintaining a cautious approach to inflation risks.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}