Euro Holds Firm Amid European Inflation Surges
The euro held steady in a tight range as investors awaited a speech by new Federal Reserve chair Kevin Warsh at the Jackson Hole Economic Policy Symposium. Meanwhile, inflation data from Europe showed a sharp uptick in France and Spain.
In particular, energy prices jumped significantly in August, driving up inflation rates in both countries. In Spain, the EU-harmonised consumer price index surged to 4.5% year-on-year, its highest level in over three years, while in France, the annual change in the EU-harmonised CPI rose to 2.7%, a level not seen since May.
The euro's relatively stable performance comes as a surprise given the recent strength of the US dollar. The EUR/USD pair is currently trading at 1.1649, down marginally on the day but holding around its one and a half week low.