Euro Holds Near $1.14 as German, French Inflation Eases

EUR/USD traded at 1.14002 on Tuesday, down 0.11% after touching a two-week high the previous session. Sterling was little changed at $1.3256.

French consumer prices rose 5.1% year-on-year in August, slower than the 5.6% pace in July. North Rhine-Westphalia, Germany’s most populous state, reported inflation of 5.9%, down from 6.3%. Both prints missed consensus forecasts.

The data gives the European Central Bank room to hold rates at its September 14 meeting. The deposit rate is 3.75%. ECB officials have said they need to see a sustained decline in inflation before ending the tightening cycle.

The eurozone-wide CPI report is due Friday. The ECB meets on September 14.

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