The Euro (EUR) appreciates higher against the US Dollar (USD) on Tuesday, although the pair remains capped below 1.1650.
Hot Eurozone inflation figures have failed to provide any significant support to the Euro, and the focus shifts now to the US JOLTS Job Openings, the first of an array of US indicators scheduled for this week
The Eurozone Harmonised Index of Consumer Prices (HICP) grew by 3.2% year-over-year (YoY) in May, up from 3% in April, according to preliminary data released by Eurostat on Tuesday. The core HICP rose by 2.5%, faster than April’s 2.2% advance and above the 2.4% market consensus. The Euro was little moved after the data release, as markets have already priced in a European Central Bank (ECB) rate hike after next week’s monetary policy meeting.
On the geopolitical front, a ceasefire between Israel and Hezbollah in Lebanon has lifted market sentiment on Tuesday and contributed to the moderate Euro recovery. Investors, however, remain on edge after Tehran announced the suspension of peace talks with the US on Monday due to violations of the ceasefire. Later on the day, the US JOLTS Job Openings are expected to show a mild increase to 6.88 million in April from 6.86 million in March.