Euroarea core inflation rose more than forecast in July, giving some hopes that the ECB’s massive bond purchases program is becoming effective.
Core inflation soared 1 percent, the fastest in 15 months, while the annual CPI reading stood at 0.2 percent.
Although inflation remains far from the ECB’s 2 percent target, it showed some signs of stability as it rose over the past three months.
Another report from the euroarea showed that unemployment lingered at 11.1 percent in June, lower than forecasts of 11 percent.
The euro traded higher against the U.S. dollar, paring some of the losses incurred over the previous three sessions, to trade around 1.0965.
The single currency came under pressure this week, as the improvement in the Fed’s outlook for the labor market and acceleration in U.S. second-quarter GDP boosted the dollar.
Still, there are some concerns from Greece after the IMF said it would not join Greece’s third bailout unless debt concerns such as debt relief and reforms are clearly addressed.