Eurozone June CPI Cools to 2.8%, Reinforcing ECB Pause and Weighing on EUR/USD

Eurozone June flash CPI eased more than expected to 2.8% y/y with core at 2.4%, confirming the disinflation trend from national prints. Softer readings from Germany, France and Italy have made a July ECB rate hike highly unlikely, shifting focus to possible September action. EUR/USD has remained pinned near 1.0850 as resilient Fed hike bets continue to offset the euro-negative backdrop. The data follows earlier national releases showing broad-based cooling led by lower energy prices.