#1 out of 15
business22m ago
EUR/USD: Euro Struggles to Break Out of Descending Channel Ahead of CPI Reading
- EUR/USD remains stuck near the upper boundary of a descending channel as CPI data approaches, signaling a potential breakout for direction.
- The euro hovered around $1.1760, with a breakout above $1.1780–$1.1800 needed to confirm momentum shift.
- Investors await the US CPI data, with expectations of 3.7% annual inflation and 0.6% monthly change.
- Higher energy prices are cited as a factor influencing inflation pressures ahead of the CPI release.
- Core inflation and housing costs remain key considerations for the CPI impact on USD and EUR.
- A hotter CPI could strengthen dollar expectations for higher interest rates, while cooler data might lift the euro.
- The CPI release is described as a pivotal event shaping near-term USD/EUR direction.
- Traders monitor whether recent gas price spikes due to Middle East tensions affect inflation.
- Oil production dynamics are noted as influencing price checks despite geographic distance.
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