Continuing its upward trajectory, the most traded currency pair in the market maintains its positive momentum on Thursday, with the current EUR/USD quote at 1.1140.

The US dollar witnessed a decline to its annual low against the Euro after the release of statistical data on the Consumer Price Index for June. The index showed a month-on-month increase of 0.2%, falling short of the expected rise of 0.3%. This monthly increase was the smallest since August 2021. Year-on-year, inflation stood at 3.0%, slightly lower than the forecasted 3.1%. The previous month, it had reached 4.0% on a yearly basis.

Furthermore, core prices demonstrated a year-on-year increase of 4.8%, below the projected 5.0%. This marks the smallest rise in more than two years.

The soft inflation report reinforces the market's belief that the Federal Reserve may opt for a single interest rate hike during this cycle of tightening monetary policy.

Given these factors, the position of the US dollar has noticeably weakened.

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