Investors await US inflation figures at 12:30 GMT, with forecasts pointing to a slowdown in both headline and core CPI growth.
The Euro trades slightly lower at 1.1534 against the US Dollar as markets adopt a cautious stance before the release of US Consumer Price Index data for July. The US Dollar Index edges up to near 99.90, reflecting subdued risk appetite among investors.
Expectations suggest US headline CPI rose 3.4% year-on-year in July, down from 3.5% in June, while core CPI is projected to ease to 2.5% from 2.6%. Monthly figures indicate modest gains of 0.1% for headline and 0.2% for core inflation.
Cooling inflation could reduce pressure on the Federal Reserve to raise interest rates further, following recent weak US jobs data that showed a net gain of just 23k jobs in July and downward revisions of 103k jobs for prior months.