Euro Recovered from Early Slump as July Inflation Data Beats Expectations

The Euro rebounded from an early slump to trade around $1.1530 against the US Dollar as July's inflation data for the Eurozone showed a firmer-than-expected reading.

The Harmonized Index of Consumer Prices (HICP) rose 2.9% year-over-year, up from June's 2.8%, while core HICP accelerated to 2.5%. On a monthly basis, headline HICP increased 0.2%, and core HICP was unchanged.

However, despite the upbeat inflation data, the Euro remains capped by hawkish comments from Dallas Fed President Lorie Logan, who said she would have preferred a 25-basis-point rate hike to support the US Dollar.