EUR/USD goes back after reaching a maximum of several years, US data promotes the dollar

• The euro rose to 1,1830, its highest level since September 2021, before lowering slightly.
• The Eurozone CPI reaches 2.0%, coinciding with the objective of the ECB, the underlying inflation remains stable in 2.3%.
• The PMI of the US ISM and Jolts employment offers exceed the forecasts, raising the US dollar index.

The euro (EUR) slides slightly down against the US dollar (USD) during the American session on Tuesday, after having briefly risen above the 180 brand earlier in the day, its highest level since September 2021. The euro found support in signs that inflation in the eurozone is stabilized, which increases the confidence of investors in the economic perspectives of the region.

At the time of writing, the EUR/USD is around 1,1773, slightly below the maximum intradic of 1,1830, since the US dollar cuts previous losses after positive US economic data.

The ISM manufacturing PMI rose to 49 in June from 48.5 in May, slightly above the 48.8 forecast. Although it is still below the 50 mark, the reading points to a slower rhythm of decline in the manufacturing activity. Separately, the US labor market showed a renewed fortress, since Jolts job offers increased by 374,000 to 7,769 million in May, the highest level from November 2024 and well above the 7.3 million expected.

After the publication of the data, the American dollar index bounced from its minimum intra -diacy of 96.38 and is now quoted around 96.82, since the dollar recovered some impulse.

Earlier on Tuesday, new eurozone data painted a slightly more optimistic picture. The HCOB manufacturing PMI of the Eurozone rose to 49.5 in June from 49.4 in May, reaching its highest level in almost three years. In the front of inflation, the general consumer price index (CPI) increased to 2.0% year -on -year in June, from 1.9% in May and in line with expectations, coinciding with the objective of the European Central Bank (ECB). The underlying inflation remained unchanged in 2.3%, the lowest level since January 2022.

In the annual ECB forum in Sintra, Portugal, President Christine Lagarde acknowledged that inflation is now on the goal, but warned that the risks are still “bilateral.” The growing global uncertainty, the increase in geopolitical tensions and changes in the way in which companies establish prices as reasons why inflation has become more difficult to predict. Lagarde said that the ECB will now focus more on several possible scenarios by making policy decisions, instead of depending solely on the central forecasts.

The ECB also confirmed its commitment to the inflation objective of 2% in the medium term, but added that it needs to be more flexible when dealing with a more unpredictable global environment.

Looking ahead, investors will be attentive to the comments of the president of the Federal Reserve (FED), Jerome Powell, during the Sintra forum. Attention now focuses on the Non -Agricultural Payroll (NFP) report on Thursday, which could influence the next Fed Policy Movement.