Euro rose in American trade away from August 21 lows against the greenback, following earlier data from the euro zone and the US, while the European Central Bank just wrapped up its policy meeting. 

As of 03:59 GMT, EUR/USD rose 0.42% to 1.1675, with an intraday low at 1.1609, and the highest since August 30 at 1.1701. 

Earlier German data showed consumer prices rose 0.1% as expected in August, down from 0.3%, while French consumer prices rose 0.5% as expected as well, improving from a 0.1% dip in July. 

The European Central Bank voted today to hold the main refinancing rate at zero, the deposit rate at minus 0.40%, and the quantitative easing program at €15 billion a month until December. 

At the post-meeting press conference, ECB President Mario Draghi expected interest rates to remain unchanged until summer 2019 or longer if needed. 

He also maintained inflation estimates until 2020 and cut growth forecasts for this year and the next, noting that the risks of the trade dispute with the US are becoming more pronounced. 

US Inflation, Labor Data  

Earlier US data showed consumer prices rose 0.2% m/m in August, same as July, while core prices rose 0.1%, slowing down from 0.2%. 

On a yearly basis, consumer prices rose 2.7%, slowing down from 2.9%, while core prices slowed down as well to 2.2% from 2.4%. 

Unemployment claims fell a thousand in the week ending September 8 to 204 thousand, while continuing claims fell 15 thousand to 1.696 million.

Federal Reserve Governor Randal Quarles testified today on the implementation of the economic growth, regulatory relief, and the Consumer Protection Act before the Senate Banking Committee, in Washington DC, while Federal Reserve Bank of Atlanta President Raphael Bostic spoke about the economic outlook and monetary policy at the Mississippi Council of Economic Education. 

The Energy Information Administration released its report on US natural gas inventories, showing a buildup of 69 billion cubic feet in the week ending September 7, adding to the 63 billion increase in the previous reading, while analysts expected a 65 billion build. 

Total stocks are now up to 2.636 trillion cubic feet from 2.567 trillion in the week ending August 31, which is below the total of the same period in 2017 at 3.298 trillion, while also below the five-year average at 3.232 trillion. 

US stock indices opened the fourth session of the week higher, with Dow Jones piercing 26,000, Standard and Poor's 500 passing through 2,900, and NASDAQ breaching 8,000 as the tech sector led the charge while trade concerns calmed down. 

Apple led the charge higher with a 1% profit after announcing a new member in the iPhone family and releasing the fourth edition of the Apple Watch focused on health aspects. 

On another note, China's foreign ministry welcomed the prospect of US officials arriving in Beijing to discuss the trade issues, in turn buoying market sentiment. 

US Inflation, Labor Data  

Earlier US data showed consumer prices rose 0.2% m/m in August, same as July, while core prices rose 0.1%, slowing down from 0.2%. 

On a yearly basis, consumer prices rose 2.7%, slowing down from 2.9%, while core prices slowed down as well to 2.2% from 2.4%. 

Unemployment claims fell a thousand in the week ending September 8 to 204 thousand, while continuing claims fell 15 thousand to 1.696 million.

Federal Reserve Governor Randal Quarles will testify on the implementation of the economic growth, regulatory relief, and the Consumer Protection Act before the Senate Banking Committee, in Washington DC, while Federal Reserve Bank of Atlanta President Raphael Bostic is due to speak about the economic outlook and monetary policy at the Mississippi Council of Economic Education later today. 

Stock Performance 

As of 02:21 GMT, Standard and Poor's 500 rose 0.42%, or 12.05 points to 2,900.97, while Dow Jones added 0.49%, or 126.46 points to 26,125.38. 

Tech-heavy NASDAQ slid 0.65%, or 51.58 points to 8,005.81. 

Gold futures rose in American trade to August 28 highs as the dollar index plumbed July 31 lows, following a spate of US inflation and employment data earlier today. 

As of 01:48 GMT, gold futures due in December rose 0.49% to $1,216.80 an ounce, marking two-week highs, while the dollar index shed 0.35% to 94.47. 

Bank of England's policymakers voted to hold the official bank rate at 0.75%, and the assets purchase program at £435 billion as expected by analysts. 

The European Central Bank also voted to hold the main refinancing rate at zero, the deposit rate at minus 0.40%, and the quantitative easing program at €15 billion a month until December. 

At the post-meeting press conference, ECB President Mario Draghi expected interest rates to remain unchanged until summer 2019 or longer if needed. 

He also maintained inflation estimates until 2020 and cut growth forecasts for this year and the next, noting that the risks of the trade dispute with the US are becoming more pronounced. 

US Inflation, Labor Data  

Earlier US data showed consumer prices rose 0.2% m/m in August, same as July, while core prices rose 0.1%, slowing down from 0.2%. 

On a yearly basis, consumer prices rose 2.7%, slowing down from 2.9%, while core prices slowed down as well to 2.2% from 2.4%. 

Unemployment claims fell a thousand in the week ending September 8 to 204 thousand, while continuing claims fell 15 thousand to 1.696 million.

Federal Reserve Governor Randal Quarles will testify on the implementation of the economic growth, regulatory relief, and the Consumer Protection Act before the Senate Banking Committee, in Washington DC, while Federal Reserve Bank of Atlanta President Raphael Bostic is due to speak about the economic outlook and monetary policy at the Mississippi Council of Economic Education later today. 

World Gold Council  

The World Gold Council recently forecast an increase of demand on the yellow metal in the second half of 2018 as inflation rises and the global trade war takes firmer shape and hurts currencies. 

Despite similar concerns in the first half of the year, gold prices were stymied by dollar's strength as the Federal Reserve tightened monetary policy on the back of strong US data.

Otherwise, Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, steadied on Wednesday at 745.18 tonnes, the lowest since February 2016, with gold prices marking the fifth monthly decline in a row in August, the longest such streak in over five years.