Around 11:00 a.m., the euro grabbed 0.08% to 1.0221 dollars.
The dollar remained stable on Wednesday a few hours before the publication of US inflation for July, an indicator that could influence the monetary policy of the Federal Reserve (Fed) for the months to come.
Around 09:00 GMT (11:00 CET), the euro climbed 0.08% to 1.0221 dollars.
“Market volatility is easing ahead of the Consumer Price Index (CPI) release,” said Exinity analyst Han Tan.
The expected figures could show at least partial moderation, after a 40-year peak in June at 9.1%.
“The markets are well aware that inflation at a record high in decades remains the number one enemy of the Fed, to the point that its leaders are ready to weigh down growth to fight against it,” adds Mr. Tan.
And investors’ apprehension “is understandable given that publications on inflation have generated some of the most volatile sessions over the past year”, adds Jim Reid, analyst at Deutsche Bank.
The data indeed surprised economists with its strength on several occasions, leading the dollar to surge.
Indeed, inflation “stronger than expected would put pressure on the Federal Reserve to adopt more aggressive rate hikes in September, which would benefit the dollar,” analysts at Sucden said.
Moreover, the situation of the energy market in Europe continues to weigh on the currencies of the Old Continent.
“Energy prices have stabilized” in recent weeks “but remain at worryingly high levels, and have the potential to pick up again” if Russia decides to limit its exports further, warns Derek Halpenny, analyst at MUFG .