The Euro edges up 0.12% as the US Dollar weakens before key US inflation figures and Fed testimony later today.
The Euro trades 0.12% higher at 1.1395 against the US Dollar in early European trading, driven by a slight correction in the Greenback. The US Dollar Index (DXY) dips 0.1% to 101.17 after rising 0.3% the prior day, bolstered by geopolitical tensions and higher oil prices.
US Consumer Price Index (CPI) data for June is expected to show headline inflation cooling to 3.8% Year-on-Year from 4.2%, while core inflation remains steady at 2.9%. Investors are also awaiting Federal Reserve Chair Kevin Warsh’s testimony before the House Financial Services Committee.
Technical analysis indicates a bearish near-term bias for EUR/USD, with the pair trading below its 20-period Exponential Moving Average and the Relative Strength Index at 39.7.