Euro hovers above parity before U.S. inflation data

A Euro banknote is displayed on U.S. Dollar banknotes in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Euro above parity, dropped to $1.00005 on July 12
U.S. CPI expected to hit 8.8%

LONDON, July 13 (Reuters) – The euro was hovering just above parity with the U.S. dollar on Wednesday while traders focused on U.S. data due later in the session that is expected to show inflation at a 40-year high.

European stock markets were in the red and currency markets were calm in early European trading, with the dollar index up by around 0.1% at 108.33 .

The euro was down 0.2% on the day at 1.00375 at 0804 GMT.

On Tuesday, it had dropped as low as $1.00005 on the most widely used Electronic Broking Services’ (EBS) dealing platform and touched $1 on Reuters dealing overnight.

Market-watchers…