Euro Trades Lower Against Dollar Ahead of US Inflation Data

The Euro (EUR) traded marginally lower against the US Dollar (USD) at around 1.1534 on Wednesday, as investors grew cautious ahead of the United States' Consumer Price Index (CPI) data for July.

The CPI data, scheduled to be released at 12:30 GMT, is expected to show a slower annual pace of 3.4% compared to June's 3.5%, with core inflation also seen lower at 2.5% Year-on-Year (YoY) from the previous reading of 2.6%.

This would indicate signs of price pressures cooling down, potentially easing fears of further Federal Reserve interest rate hikes, which have already subsided significantly in recent days following weak US Nonfarm Payrolls (NFP) figures for July.