Euro Strengthens Above 1.1500 as Cooling US Inflation Weighs on Dollar

What happened

Core PPI rose 0.2% in July, below the 0.3% consensus. Headline PPI climbed 4.7% YoY. Markets price a 34.8% probability of a US rate hike in September, down from 40%. EUR/USD trades above 1.1500.

Why it matters

Cooling US inflation reduces the likelihood of a Fed rate hike, putting downside pressure on the USD. Geopolitical risks remain a USD support factor. Technically, EUR/USD is capped by the 100-day moving average at 1.1565.