EUR/USD Holds Ground as Spain CPI Confirms 3.2%; Core at 2.9%

EUR/USD is navigating mixed signals as Spain's final June CPI was confirmed at 3.2% year-over-year, in line with the preliminary reading. Core annual inflation edged down marginally to 2.9% from 3.0% in May, remaining stubbornly above the ECB's 2% target. The data underscores persistent inflationary pressures in the euro area's fourth-largest economy, a factor the ECB must weigh alongside similar readings from Germany. However, when aggregated with other euro area inflation data, the June figures still afford the ECB flexibility to pause rate adjustments at its July meeting. Meanwhile, the recently soft US CPI print has eased Fed tightening fears, providing a supportive backdrop for risk sentiment and relieving some downward pressure on EUR/USD. Traders should watch for Eurozone Industrial Production data and broader inflation trends for further direction. Near-term, the pair is likely to consolidate as markets await more definitive guidance from the ECB. Persistent core inflation above target limits the scope for aggressive ECB easing.