US inflation figures reduced bets on a Federal Reserve rate hike, supporting the euro above 1.1500 ahead of EU growth data.
The euro held above 1.1500 against the dollar as US inflation data tempered expectations for a Federal Reserve rate hike at its September 16 meeting. Traders shifted bets from a potential increase to a likely hold, easing pressure on the single currency.
Prior to the data, markets had priced in a higher probability of a Fed hike, weighing on the euro. The shift in sentiment follows recent economic indicators suggesting cooling inflationary pressures in the US.
Investors are now awaiting European Union economic growth figures, which could further influence the euro’s trajectory.