EUR/USD Pair Struggles Amid Stronger USD and Inflation Fears
The EUR/USD pair is struggling to make gains near the 1.1600 mark as the US dollar strengthens amid economic uncertainty and inflation concerns.
Eurozone Harmonized Index of Consumer Prices (HICP) data, due out later this month, is expected to show higher inflation rates in August, making a September rate increase by the European Central Bank all but certain. The German CPI inflation data rose to 2.9% YoY in August from 2.8% in July.
US Federal Reserve Chair Kevin Warsh's comments last week have revived market bets for an imminent interest rate hike, contributing to the safe-haven demand for the US dollar and downward pressure on the EUR/USD pair.