Euro loses slightly in value after recent US price data

On Thursday, the euro showed some weakness against the US dollar over the course of the day. After reaching an early peak of $1.0895, marking the strongest value since mid-March, the European common currency settled at $1.0861 in the afternoon. The European Central Bank (ECB) set the official reference rate at $1.0866, slightly higher than the day before, which equates to an exchange rate of 0.9203 euros for the dollar. The euro's slight cooling only partially reversed the gains from the previous day. A positive sentiment had emerged on Wednesday due to signals of easing in US inflation, suggesting a possible loosening of monetary policy by the US Federal Reserve (Fed) in the near future. This followed markets being taken by surprise with higher than expected inflation rates and dampening speculation on imminent Fed interest rate cuts. The dollar regained support in the afternoon following the release of new price data from the US. Particularly, import prices in April rose more sharply than projected, causing a stir since they directly affect consumer prices and therefore could influence the Fed's monetary policy direction. Other economic indicators from the US presented a mixed picture. In relation to other major currencies, the ECB set the reference rates at 0.85850 British pounds, 168.33 Japanese yen, and 0.9822 Swiss francs per euro. Away from the currency markets, the fine ounce of gold was traded in London with a slight easing in price at $2374, approximately $10 lower than at the previous day's close.