The euro recovered slightly from its lowest level in over a year as traders assessed US inflation figures aligning with forecasts.
EUR/USD pared losses on Thursday, trading near 1.1362 after hitting a 13-month low earlier in the session. The pair’s recovery followed the release of US inflation data that matched market expectations, easing immediate pressure on the dollar.
Prior to the rebound, the euro had fallen to its weakest level since mid-2023, reflecting broader dollar strength amid shifting monetary policy expectations. Analysts noted the data did little to alter the Federal Reserve’s near-term outlook, keeping focus on upcoming economic indicators.
Markets showed muted reaction to the inflation print, with the euro’s modest recovery suggesting cautious positioning ahead of further US data releases.