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2025.09.0207:41:00UTC+00Euro Slips Ahead of Eurozone Inflation Data

The euro fell below $1.17 on Tuesday but remained near its peak since late July, as traders anticipated a week filled with pivotal economic data that could influence monetary policy decisions from both the European Central Bank (ECB) and the Federal Reserve. In the eurozone, preliminary inflation figures for August are projected to confirm a price growth rate at the ECB’s 2% target for the third month in a row, bolstering expectations that the ECB will maintain current interest rates at their upcoming meeting. Meanwhile, across the Atlantic, investors are closely watching forthcoming U.S. employment figures to assess the potential magnitude of a Federal Reserve rate reduction later this month. Additionally, ongoing political instability in France continues to impact market sentiment, with traders preparing for a confidence vote scheduled for September 8.

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