Euro fades post-CPI advance after hitting two-day high

EURUSD initially strengthened after the US July inflation report came in benign, prompting a repricing toward a less hawkish Federal Reserve. The pair reached a two-day high of 1.1563.

The advance then reversed, with the euro fading the soft-CPI move and giving back the earlier gain.

The pullback leaves the pair below the two-day high as the market reassesses the inflation impulse.