EUR/USD Reverses Gains as US Dollar Recovers from CPI Decline

The EUR/USD price has given up its earlier gains as the US Dollar recovers from its post-CPI decline, sending the pair towards the lower end of its recent range.

The US Consumer Price Index (CPI) data showed headline and core CPI easing to 3.4% and 2.5%, respectively, which prompted traders to scale back Federal Reserve (Fed) rate-hike bets.

However, the Greenback later pared its losses as elevated energy prices kept inflation risks tilted to the upside, supporting safe-haven demand for the US Dollar.

The EUR/USD pair retains a neutral-to-slightly bullish bias, holding above the 1.1500 psychological mark and the 50-day Simple Moving Average (SMA) at 1.1466.