Sluggish movements of the greenback against other major currencies had an impact on the European trades. In particular, the EUR/USD pair was trading slightly below the level of 1.14. Even the upbeat inflation data failed to provide support to the single European currency. Reports from the Eurozone showed that in annual terms the consumer price index advanced by 2.1% in July at a faster pace than in the previous month. The result came in line with the expectations of economists. However, on a monthly basis, the index decreased by 0.1%. In June, the inflation rate came in at 0.1%. The Core CPI excluding the cost of food and energy rose from 0.9% to 1.1%
However, the market participants doubt that this data may prompt the European Central Bank to change the monetary policy in the near future. The regulator may refrain from hiking the interest rate due to Donald Trump's protectionism in particular towards Turkey. Another European currency, the British pound, is also under pressure. The GBP/USD pair was trading below the level of 1.27. Uncertainty over Brexit persists, so the UK national currency may suffer a continuous decline. Analysts doubt that the single European currency will be able to offset losses by the end of this trading week. So, it is highly possible that the EUR/USD pair will close the trades in the red zone.