Euro Rises Slightly, Focus on US Inflation
The EUR/USD currency pair strengthened moderately at the start of the European session on Monday (August 11th), hovering around the 1.1670 level. This rise occurred amid a relatively calm market environment, with market participants' primary focus on the release of US consumer inflation (CPI) data scheduled for Tuesday, as well as the continuation of trade negotiations between the US and China.
Hopes for a peace agreement regarding the Ukraine war also supported the euro's strengthening. The meeting between US President Donald Trump and Russian President Vladimir Putin, scheduled for August 15th in Alaska, is seen as an opportunity to ease tensions, especially if Ukrainian President Volodymyr Zelensky is included in the discussions, as European leaders hope.
On the economic data front, the macro calendar was relatively light on Monday, featuring only inflation and trade balance data from Italy. Meanwhile, the market awaited the release of the US CPI for July, which is expected to accelerate. This data has the potential to influence expectations for the Fed's future interest rate policy, which in turn will impact the movement of the US dollar and related currency pairs such as the EUR/USD. Meanwhile, the August 12 deadline for a US-China trade deal adds to market uncertainty, although some market players expect the truce to be extended. (ayu)
Source: Newsmaker.id
