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fxJul 14, 2026, 8:10 PM

Euro Strengthens as US Inflation Misses Expectations

EUR/USD rose to near 1.1420 on Tuesday after softer-than-expected US inflation data weighed on the US Dollar. The euro's recovery is primarily driven by broad dollar selling rather than Eurozone factors.

EURUSD

EUR/USD traded higher near 1.1420 on Tuesday as the US Dollar weakened following softer-than-expected US inflation data. The move was driven primarily by broad-based Greenback selling rather than Eurozone-specific catalysts.

The US inflation report came in below market expectations, prompting a sell-off in the dollar. The euro's gains reflect this dynamic, with the pair capitalizing on the weaker USD environment.

Market participants are now assessing whether the softer inflation data will influence the Federal Reserve's monetary policy outlook, potentially slowing the pace of rate hikes.

Source: FXStreet Forex News