FX.co ★ Euro Steady as Investors Await Catalysts

The euro was steady around $1.14 as investors awaited fresh catalysts. The currency lost 0.5% against the US dollar last week following weaker-than-expected US nonfarm payroll data. Upside for the euro remained capped by softer Eurozone inflation and dovish comments from ECB President Christine Lagarde, which dampened expectations for a third rate hike this year, though markets still see a second increase as likely in September. June figures showed headline inflation slowing to 2.8% from 3.2% in May, undershooting forecasts, while core inflation eased to 2.4%, also below expectations. Speaking at the ECB’s Sintra Forum, Lagarde highlighted reduced risks to inflation and growth in the euro area, pointing to lower energy price pressures stemming from the US–Iran peace agreement.