EURUSD Ticks Up as US Inflation Eases, ECB Hawks Keep Dollar Under Pressure

The EURUSD currency pair saw a modest uptick on August 12, rising from 1.1540 to 1.1545, driven by shifting market sentiment in response to fresh US inflation data and contrasting central bank signals.

The release of the US Consumer Price Index (CPI) for July at 8:30 a.m. ET showed headline inflation easing to 3.4% year-over-year from 3.5% in June, while core inflation cooled to 2.5% from 2.6% the previous month.

This softer inflation print led market participants to reassess the Federal Reserve's near-term policy path, with expectations for a rate hike at the September meeting diminishing and causing the US dollar to weaken broadly.

The European Central Bank's hawkish stance, supported by persistent inflation in Germany, continues to influence EURUSD dynamics, supporting the euro against the dollar.