EUR/USD Reverses Course After US CPI Release
The EUR/USD pair reversed course on Thursday after reaching a two-day high of 1.1563 following the release of the US Consumer Price Index (CPI) for July.
The benign inflation report, which was in line with expectations, indicated ongoing disinflation and triggered a repricing of a less 'hawkish' Federal Reserve throughout 2026.
The odds of a Fed hold at the September meeting jumped to 60%, up from 40% before the release of the CPI data.
In the Eurozone, Germany's Harmonized Index of Consumer Prices (HICP) held steady at 2.8% in July, unchanged as expected, but economists warned that energy prices continued to rise at an above-average rate and remained a crucial driver for inflation.
The EUR/USD pair retreated from earlier gains, trading at 1.1522, down 0.17% at the time of writing.