{"id":599094,"date":"2026-08-20T11:14:31","date_gmt":"2026-08-20T11:14:31","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/599094\/"},"modified":"2026-08-20T11:14:31","modified_gmt":"2026-08-20T11:14:31","slug":"euro-remains-stronger-following-julys-eurozone-hicp-data","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/599094\/","title":{"rendered":"Euro remains stronger following July\u2019s Eurozone HICP data"},"content":{"rendered":"<p>EUR\/USD rises after registering minor losses in the previous day, trading around 1.1600 during the European hours on Wednesday. The pair holds ground as the Euro (EUR) remains stronger following the release of Eurozone Harmonized Index of Consumer Prices (HICP) data for July. Eurozone annual inflation rose to 2.9% in July from 2.8% in June, matching preliminary estimates and staying above the European Central Bank&#8217;s 2.0% target. Core inflation, excluding food and energy, also ticked up to 2.5% from 2.4%.<\/p>\n<p>El Ni\u00f1o risks keep ECB hawkish as Eurozone inflation seen near 3%<\/p>\n<p>Analysts at ING argue that the recent surge in energy costs is reinforcing the European Central Bank\u2019s hawkish bias, noting that \u201chigh energy prices also maintain the hawkish undercurrent at the European Central Bank.\u201d They highlight comments from ECB Chief Economist Philip Lane, who warned that <a href=\"https:\/\/www.fxstreet.com\/economic-calendar\/country\/c9822cb1-6cee-45f4-a9a2-89d136990308\" data-fxs-autoanchor=\"\" rel=\"nofollow noopener\" target=\"_blank\">Eurozone<\/a> inflation could remain \u201cat 3.0% all year and perhaps staying high next year as well,\u201d with the El Ni\u00f1o weather event expected to \u201cdrive food inflation globally\u201d and add another layer of upside risk to the price <a href=\"https:\/\/www.fxstreet.com\/rates-charts\/forecast\" data-fxs-autoanchor=\"\" rel=\"nofollow noopener\" target=\"_blank\">outlook<\/a>.<\/p>\n<p>Moreover, <a href=\"https:\/\/www.fxstreet.com\/currencies\/eurusd\" data-fxs-autoanchor=\"\" rel=\"nofollow noopener\" target=\"_blank\">the EUR\/USD pair<\/a> rises as the US Dollar (USD) loses ground on easing expectations of a US interest rate hike next month. Recent economic data showed that US Retail Sales dropped in July for the first time in nine months, compounding concerns after unexpected job losses last month and tame CPI inflation figures.<\/p>\n<p>According to the CME FedWatch tool, traders now price in just a 32.8% chance of a rate hike at the Fed\u2019s September meeting, down significantly from 51.2% a month earlier. Traders are now turning their focus to the upcoming release of the Federal Reserve\u2019s July Meeting Minutes for further market direction.<\/p>\n<p>Dollar slide adds to already strong domestic inflation pressures<\/p>\n<p>Strategists at BNY Mellon caution that the adjustment underway in the Dollar could unfold faster than many expect, noting that \u201cthat timeline could prove conservative.\u201d They point out that \u201cthe Dollar is already weakening in nominal terms, introducing some pass-through inflation risk, even if the US is less exposed to this channel than more export-dependent economies.\u201d This prospective external impulse, BNY adds, \u201ccomes on top of uniquely strong domestic inflation pressures from capital expenditure and demand,\u201d reinforcing their view that the current Dollar move is occurring against a backdrop of already elevated underlying price dynamics.<\/p>\n","protected":false},"excerpt":{"rendered":"EUR\/USD rises after registering minor losses in the previous day, trading around 1.1600 during the European hours on&hellip;\n","protected":false},"author":2,"featured_media":563596,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":["post-599094","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/599094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=599094"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/599094\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/563596"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=599094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=599094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=599094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}