EUR/USD: The Euro stabilises near multi-month highs at $1.1260 as European Inflation Data Looms

After last week's very low inflation report, the dollar doesn't have much to give investors. Then comes Europe.

On Monday, the EURUSD pair kept the gains it made last week, trading between $1.1220 and $1.1270. After US inflation came in below expectations last week, there was little chance that investors would pay attention to the dollar. This suggests that the Fed will slow down on raising interest rates.

Now it is the turn of the euro. The European inflation number will be released on Wednesday, and experts don't have a lot of hope for it. They thought that, on an annualised level, consumer prices in all of Europe would go up 5.5% in June. Most people think that inflation will be less than May's 6.1%.

In the last seven days of trade, the euro has only had one day where it went down. During that time, the EUR/USD exchange rate has gone up by more than 400 pips, or 3.9%. Other important currencies, like the British pound and the Swiss franc, have also gotten stronger against the US dollar.