EUR/USD trades near the 1.1530 area during Friday’s American session, consolidating after a strong rally off intraday lows.
The Euro found support from resilient Eurozone inflation data, although gains remain capped as hawkish Federal Reserve (Fed) rhetoric boosts the US Dollar
Preliminary data from Eurostat showed that the Eurozone Harmonized Index of Consumer Prices (HICP) rose 2.9% YoY in July, up from June’s 2.8% reading. Meanwhile, core HICP accelerated to 2.5% YoY, above both the previous 2.4% and economists’ forecasts, suggesting underlying price pressure remains persistent. On a monthly basis, headline HICP increased 0.2%, while core HICP was unchanged.
Labor market figures were more mixed. Germany’s unemployment rate edged higher to 6.4% in June from 6.3%, while the number of unemployed increased by 6,000, slightly above expectations, pointing to some moderation in labor market conditions. The US Dollar, however, continues to draw support from renewed hawkish comments by Dallas Fed President Lorie Logan.