FOREX-Dollar loses ground against euro as inflation data shows cooling Updates as of 10:20 a.m. ET By Laura Matthews and Sruthi Shankar Aug 14 (Reuters) - The dollar lost ground against its major peers on Wednesday, helping the euro to an eight-month peak, as the U.S.consumer price index showed inflation is subsiding, reinforcing expectations that Federal Reserve interest rate cuts are near.

BUZZ-FX options wrap - Risk premium, USD direction, EUR/USD targets Overnight expiry FX option implied volatility in the higher beta USD pairings was trading its biggest pre-U.S. CPI premium this year. However, Wednesday's data was basically in line with expectations and didn't prompt the excessive volatility for which options were primed. Broader FX option implied volatility has eased as the CPI risk premium was priced out and as always, is more evident in sub-one-month expiry contracts.

BUZZ-COMMENT- Sterling trickles lower after US CPI dents aggressive Fed cut odds GBP/USD extended its early NorAm weakness sliding to a session low at 1.2829 after in-line CPI trimmed hopes for a 50bp September Fed rate cut. However, given that the Fed is still expected to cut rates 25bps in September, and more than 100bps by year-end, sterling should remain well-bid.

FOREX-Dollar pares losses after US inflation data By Laura Matthews NEW YORK, Aug 14 (Reuters) - The U.S. dollar pared losses against a basket of currencies on Wednesday, after consumer price index data showed inflation is subsiding, doing little to support expectations of a large rate cut . The dollar index =USD , which tracks the U.S. currency against six major peers, was at 102 .59 , down 0.04%.

FOREX-Euro climbs to seven-month highs ahead of US inflation test Dollar on the backfoot Pound eases after inflation data Kiwi slides on rate cut Updated at 1127 GMT By Sruthi Shankar Aug 14 (Reuters) - The euro hit a seven-month peak against the dollar on Wednesday, as traders bet U.S. consumer prices data later in the day will keep the Federal Reserve on course to cut interest rates next month.