EUR/USD Pauses Near 1.1550 as Fed Hike Odds Decline

The EUR/USD pair is trading near 1.1550 after recovering from its recent test of the 1.1500 area.

The change in expectations regarding Fed policy following the U.S. inflation data has been a main factor supporting the euro.

U.S. inflation eased pressure on the Fed with the Producer Price Index released on August 13 coming in softer than expected, at 4.7% annual rate, while core inflation slowed to 2.5%

The labor market has not shown a sharp deterioration, but the data point more to a gradual cooling of the economy.