EUR/USD gained 0.5% after Greenback flows eased back on Tuesday.
European economic data remains thin, and Fed Chair Powell sold a steady rate plan.
US CPI and PPI inflation figures are due through the midweek sessions.
EUR/USD snapped a three-day losing streak, recovering ground and rebounding to just north of 1.0350 as broad-market flows reversed out of the safe haven Greenback and investor sentiment broadly rebounded. Investors are shrugging off US President Donald Trump’s latest tariff threats, and Federal Reserve (Fed) Chair Jerome Powell reiterated the Fed’s dedication to following a data-dependent approach in the face of volatile, inconsistent trade policy messaging from the Trump administration.
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European data releases are overall tepid this week. German final Harmonized Index of Consumer Prices for the year ended January are due on Thursday, alongside pan-EU Gross Domestic Product figures for the fourth quarter slated for Friday. Neither datapoint is expected to move the needle very much, as neither figure is a preliminary print and European data tends to be well-forecast and priced in ahead of the release schedule.
Forex Today: Key US CPI takes centre stage amid a cautious Fed
US Consumer Price Index (CPI) inflation will be the dominant print on Wednesday. Headline US CPI inflation is expected to hold at 2.9% YoY, while core CPI inflation is forecast to tick down to 3.1% versus the last print of 3.2%. US Producer Price Index (PPI) inflation follows up on Thursday, with core PPI business-level inflation expected to cool slightly to 3.3% YoY from 3.5%.
EUR/USD price forecast
EUR/USD traders found the buy button and bolstered the pair back above the 1.0350 level on Tuesday. Fiber broke out of a three-day down streak. Still, momentum remains limited, and the pair continues to trade into a familiar congestion zone just below the 50-day Exponential Moving Average (EMA) near 1.0430.
EUR/USD daily chart
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