Eurozone’s preliminary Harmonized Index of Consumer Prices (HICP) inflation for June came in at 2.8% year-on-year, below the forecasted 3% and down from May’s 3.2%, according to FX Street. The data also showed a 0.1% month-on-month decline, signaling a slowdown in inflationary pressures within the region.
EUR/USD trading reflected this softer inflation print, with the pair hovering around 1.1390 during European hours on Wednesday before the data release. The euro weakened slightly, moving from an intraday low of 1.1381 to a rebound high of 1.1436, as market participants digested the inflation figures.
UOB’s Quek Ser Leang anticipates EUR/USD to trade within a range of 1.1385 to 1.1435 intraday following this volatility. For Japanese investors, the easing Eurozone inflation outlook may influence risk sentiment and currency flows, particularly in FX markets where the yen and euro often interact amid global economic shifts.