Euro Surges Above $1.1500 as Eurozone Inflation Accelerates

The euro rebounded above $1.1500 on August 2, 2026, after European Union inflation data showed faster-than-expected underlying price pressures.

Eurozone Consumer Price Index (CPI) annual inflation accelerated to 2.9% in July from 2.8% in June, while core inflation rose to 2.5%, surpassing analyst forecasts that expected the measure to remain unchanged at 2.4%.

The economic reading bolstered market expectations for a European Central Bank (ECB) interest rate increase in September, with money markets pricing in a 65% probability of a 25-basis-point rate hike at the ECB's upcoming meeting.