Euro fell in European trade on Wednesday against a basket of major rivals while moving away from two-week highs against the dollar on profit-taking as investors shun risks ahead of major German inflation data.

Such data will provide important clues on the mainline inflation direction in the whole eurozone, which in turn would help determine the likely path ahead for monetary policies.

The Price

The EUR/USD fell 0.15% to $1.0844, with a session-high at $1.0861.

The pair closed flat on Tuesday after marking a two-week high at $1.0889.

The pair moved away from two-week highs after strong US data and bullish remarks by Fed officials.

German Inflation

Later today, important German inflation data will be released, and will help determine the likely path ahead for European inflation.

European Rates

The markets have priced in a likely ECB interest rate cut in July, thus it wont have any major bearing on the euro.

Recent data showed stronger than expected German growth data, and improving business sentiment.

Such data reduced the outlook of multiple more interest rate cuts by the European Central Bank this year following the June rate cut.