The EUR/USD pair continued its downward trend for the third consecutive day, trading around 1.1540 during European hours on Wednesday, according to FX Street. This movement follows the release of Germany’s Harmonized Index of Consumer Prices (HICP), which weighed on the Euro’s strength against the US Dollar.
Commerzbank analysts pointed to cautious positioning in the US Dollar ahead of the July Consumer Price Index (CPI) report, with the Dollar Index steady near 99.83. Meanwhile, UOB noted that EUR/USD was holding near 1.1540 after a quiet session, expecting the pair to consolidate between support at 1.1530 and resistance at 1.1560. A break above 1.1560 could potentially push the pair toward 1.1580.
For Japanese investors, the EUR/USD’s current pattern highlights the ongoing sensitivity of major currency pairs to European inflation data and upcoming US economic releases, factors that could influence FX market volatility and cross-currency strategies in Tokyo.