EUR/USD jumps to near 1.0830 as Eurozone inflation grew more than expected in July and the US Dollar slumps.
Eurozone annual headline HICP surprisingly accelerated while the core figure grew steadily.
The US Dollar weakens on expectations that the Fed will deliver a dovish guidance on interest rates.
The EUR/USD pair moves higher to near 1.0830 in Wednesday’s European session. The major currency pair rises as price pressures in Eurozone grew at a faster-than-expected pace in July. This has raised doubts about whether the European Central Bank (ECB) will resume its policy easing cycle in the September meeting.
Preliminary Eurozone Harmonized Index of Consumer Prices (HICP) report for July showed that annual headline and core inflation, which strips off volatile items such as: food, energy, alcohol, and tobacco, surprisingly accelerated. The headline HICP unexpectedly rose to 2.6%, while economists expected the inflation figure to decelerate to 2.4% from June’s reading of 2.5%. The core HICP grew steadily 2.9% against expectations of 2.8%.
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