The euro trimmed losses against the dollar after US inflation data reduced demand for the greenback amid geopolitical tensions.
EUR/USD rebounded to 1.1627 after hitting an intraday low, as softer-than-expected US PCE data eased demand for the US dollar. The pair had earlier declined amid heightened geopolitical risks in the Middle East.
Prior to the release, the dollar had strengthened on expectations of persistent inflation, but the data prompted traders to reassess their positions. The euro’s recovery reflects a shift in sentiment despite broader market uncertainty.
Markets showed limited immediate reaction beyond the currency pair’s rebound, as traders await further economic indicators.