Euro Stalls Ahead of Warsh's Jackson Hole Speech Amid Rising Eurozone Inflation

The euro remained relatively stable at $1.165 as investors absorbed economic data and anticipated Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium for clues on US interest rate prospects.

Recent inflation figures from France and Spain revealed increased price pressures, bolstering expectations of an ECB rate hike in September.

Inflation rates rose to 2.7% in France, a three-month high, while Spain's climbed to 4.5%, its highest since 2023 and more than double the ECB's 2% target.

Markets now forecast the ECB deposit rate at 2.80% by March next year, up from 2.25% currently, indicating roughly a 60% chance of a hike to 3%.