EUR/USD steady as France inflation miss keeps ECB policy restrictive

EUR/USD remains stable following French inflation data that came in below forecasts, reinforcing expectations for continued restrictive European Central Bank monetary policy. The softer-than-expected French inflation figures suggest price pressures may be easing faster than anticipated, potentially giving the ECB more flexibility in future policy decisions. However, the central bank is likely to maintain its current restrictive stance to ensure inflation returns sustainably to target. The euro showed limited reaction to the data as markets had already positioned for potential downside surprises in eurozone inflation. Technical levels for EUR/USD remain well-defined, with the pair trading within established ranges. Traders are now looking ahead to eurozone-wide inflation data and any ECB official commentary for further policy clues. The inflation undershoot could eventually support arguments for earlier rate cuts, but near-term EUR/USD direction will likely depend more on dollar dynamics and risk sentiment.