Euro Stabilizes on Resilient Inflation Data Amid Hawkish Fed Rhetoric

The EUR/USD pair has stabilized near the 1.1530 area after a strong rally, thanks to resilient Eurozone inflation data. The Eurozone Harmonized Index of Consumer Prices (HICP) rose 2.9% year-over-year in July, exceeding June's reading and economists' forecasts.

The core HICP accelerated to 2.5%, indicating persistent underlying price pressure. However, labor market figures were mixed, with Germany's unemployment rate edging higher to 6.4%. Dallas Fed President Lorie Logan's hawkish comments have continued to support the US Dollar, stating that monetary policy is not restraining the economy and inflation is not on course to return to the Federal Reserve's 2% objective.

The EUR/USD pair remains in a bullish trend, with short-term technical analysis indicating an ongoing constructive trend. The Relative Strength Index (RSI) hovers around 67, suggesting firm upside momentum but also a growing risk of a brief pause or shallow pullback.