EUR/USD Stalls as US Inflation Data Provides No Surprise

The EUR/USD price has been steady following the release of the US inflation data. The euro traded around 1.1550, up 0.08% on the day, after a brief volatility spike following the announcement.

The Consumer Price Index rose 3.4% year-over-year in July, aligning with forecasts. However, the core figure increased by 2.5%, also as expected. The dollar reaction was subdued due to the data providing no surprise capable of altering the Fed outlook.

The technical analysis suggests that EUR/USD is not a dollar story or a euro story but rather a pair caught between two central banks leaning towards tightening. The energy shock has loaded asymmetric damage onto the eurozone, making every dollar-negative headline deliver 20 pips instead of 80.