Euro Stabilizes Above $1.1500 as US Inflation Data Cools Rate Hike Bets

The Euro has held firm above $1.1500 as inflation data in the US curbed bets on a Federal Reserve rate hike, causing traders to shift from expecting a rate hike to a hold at the September 16 meeting.

US producer-side inflation confirmed that the disinflation process is evolving, with the Producer Price Index (PPI) cooling to 4.7% compared to June's print.

This pushed investors to reduce bets on the Fed easing policy in September, and for December, the odds continue to edge lower, now at a 67% chance for a rate hike by the end of the year, down from around 70% a day before, according to Prime Terminal.