LONDON—The euro edged higher on Wednesday, 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 the dollar index was down 0.2 percent on the day at $107.93 at 1047 GMT.
The euro was up 0.2 percent on the day at $1.00595.
On Tuesday, the euro had dropped as low as $1.00005 on the most widely used Electronic Broking Services’ (EBS) dealing platform and it touched $1 on Reuters dealing overnight.
Market-watchers were focused on U.S. CPI data due later in the session. Economists forecast headline U.S. inflation accelerated to 8.8 percent year-on-year in June, a four-decade high….