Traders await Wednesday’s US inflation report, which may influence Federal Reserve rate decisions amid Middle East tensions and crude price gains.
The euro remains nearly flat against the dollar at 1.1541, trading below its 100-day simple moving average of 1.1567. Investors are positioning ahead of key US Consumer Price Index data, which could shape expectations for Federal Reserve policy moves.
Market forecasts anticipate a slight dip in US headline inflation to 3.4% year-over-year for July, down from 3.5% in June. Core inflation is also projected to ease to 2.5% from 2.6%. The data follows recent comments from Fed officials emphasizing price stability as a priority.
Geopolitical tensions in the Middle East have supported crude prices, with WTI rising over 1.3% to $83.40. Concerns persist after US actions in the region and Houthi attacks on vessels in the Strait of Bab El-Mandeb.