Euro futures slipped as lower inflation supports policy pause.
September Euro futures experienced minor daily losses but managed a weekly gain of 0.14%, continuing to carve out a bottom over the past four weeks. The currency found support after Eurostat reported that June Eurozone inflation cooled significantly to 2.8%, down from 3.2% in May and coming in below market expectations. This softer macroeconomic reading gives the European Central Bank enhanced flexibility to hold interest rates steady at 2.25% during its upcoming meeting. However, war-driven energy risks remain a primary concern for policy makers, contrasting with weaker U.S. inflation data that has cooled the Federal Reserve's tightening narrative.
September Euro futures experienced minor daily losses but managed a weekly gain of 0.14%, continuing to carve out a bottom over the past four weeks.
The currency found support after Eurostat reported that June Eurozone inflation cooled significantly to 2.8%, down from 3.2% in May and coming in below market expectations.
This softer macroeconomic reading gives the European Central Bank enhanced flexibility to hold interest rates steady at 2.25% during its upcoming meeting.
However, war-driven energy risks remain a primary concern for policy makers, contrasting with weaker U.S. inflation data that has cooled the Federal Reserve's tightening narrative.