FX.co ★ Euro Slightly Up as Middle East Talks, Inflation Data Eyed

The euro inched up to $1.165 amid mixed signals over efforts to resolve the Middle East conflict and as investors awaited the release of May inflation data for the Eurozone later today. US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu gave divergent accounts of a phone call about the fighting in Lebanon: Trump said he had urged both sides to halt hostilities, while Netanyahu’s description was more ambiguous. The confusion follows reports that Iran has suspended talks with the US, insisting that an end to the Lebanon clashes be included in any agreement, even as Trump maintained that negotiations with Tehran were progressing rapidly. Markets are also looking to the flash May Eurozone inflation figures for insight into the economic fallout from the Iran-related tensions. The data precede next week’s European Central Bank meeting, with futures currently assigning a 95% probability to a 25-basis-point rate hike. Investors expect two such increases this year, with a possible third under consideration.