The Euro edges higher for a third day but stays below 1.1575 as traders await US inflation figures for direction.
The Euro (EUR) rose modestly against the US Dollar (USD) for a third straight session on Wednesday but remained near two-month lows, trading below the 1.1575 support level. The currency pair hovered around 1.1500, its weakest since mid-July, as markets awaited the US Consumer Price Index (CPI) release later in the week.
Prior to the CPI data, the EUR/USD pair had struggled to break above 1.1600, reflecting cautious sentiment amid expectations of persistent US inflation. The previous session saw the pair dip to 1.1495, its lowest since July 18, before a slight rebound. Analysts noted that the Euro’s resilience was limited by broader USD strength and diverging monetary policy outlooks.
Traders are closely monitoring the US inflation report, which could influence the Federal Reserve’s rate path. A higher-than-expected CPI print may reinforce bets on further Fed tightening, potentially weighing on the Euro.