EUR/USD Steady as Eurozone Inflation Eases to 2.8%, Core CPI Hits 2.4%

Eurozone final June CPI data confirmed headline inflation at 2.8% year-over-year, matching the preliminary reading and marking a notable decline from the prior 3.2%. Core CPI was also confirmed at 2.4% y/y, down from the previous 2.6%, signaling a broad-based cooling in price pressures across the currency bloc. The monthly headline inflation figure recorded a negative reading, driven largely by a significant drop in energy price inflation. The data reinforces the European Central Bank's disinflationary narrative and supports expectations for potential further rate adjustments later in the year. With no revisions to the preliminary estimates, the report had limited immediate impact on EUR/USD, though the disinflationary trend could weigh on the euro over the medium term if markets price in more aggressive ECB easing. Traders should watch for upcoming ECB commentary and compare the Eurozone inflation trajectory with US price data to gauge relative monetary policy divergence, which remains a key driver for EUR/USD directional bias in the weeks ahead.