Euro Stabilizes as European Inflation Rises Ahead of Fed Speech

The Euro remained stable in a tight trading range, with the EUR/USD pair trading at 1.1649. The currency is holding near a one-and-a-half-week low following a 1% gain during the previous week.

Kevin Warsh, Chair of the Federal Reserve, is expected to speak at the Jackson Hole Economic Policy Symposium, an event that has investors pausing to assess future monetary policy. While the market awaits this guidance, the Euro has found support from increasing inflation data across Europe, largely driven by a surge in energy prices during August.

Inflationary pressures have intensified in major EU economies. Spain's EU-harmonised consumer price index rose to 4.5% year-on-year, marking its highest level in over three years and an increase from 3.9% in July. In France, the annual inflation rate climbed to 2.7% from 2.4% in July, the highest point recorded since May.