EUR/USD Flatlines as Fed Rate Hike Odds Slide
The EUR/USD pair has been holding steady near 1.1520 during European trading hours on Thursday, following the US inflation data release.
US inflation cooled down for a second straight month, easing pressure on the Federal Reserve (Fed) to raise interest rates soon. The Consumer Price Index (CPI) rose 3.4% YoY in July, compared to 3.5% in the previous reading.
Fed officials will get August CPI and jobs reports before their September meeting, which might influence their decision-making process. However, escalating geopolitical tensions in the Middle East could boost a safe-haven currency like the US Dollar (USD), creating a headwind for the major pair.
Analysts at Scotiabank observe that the Euro is consolidating within a tight range without a clear directional driver in recent trading. The technical analysis suggests that EUR/USD keeps a bearish vibe under the 100-day SMA, with price remaining above the 20-day Bollinger middle band SMA.