Euro Flat as Markets Await US Inflation Data
The Euro (EUR) has given back its early gains and is trading flat at around 1.1625 against the US Dollar (USD) during the European trading session on Wednesday.
The pair fell back as the US Dollar recovered its early losses, but financial markets are looking to the upcoming US Consumer Price Index (CPI) data for August, which will be released on Friday.
According to TD Securities, underlying price pressures remain contained, with core likely rising 0.19% m/m (2.3% y/y), while headline CPI is expected to be a stronger 0.37% m/m (3.4% y/y) due to rising energy prices and a slight pickup in food inflation.
The inflation data will have a significant impact on the Federal Reserve's monetary policy outlook, with a 60% chance that the Fed will raise interest rates in the September policy meeting.