The euro was unable to benefit further from higher than expected inflation data. Economists at Commerzbank expect the EUR/USD to hover around the 1.07 zone as gradual rate hikes still seem to be the European Central Bank's (ECB) choice of action.

ECB to take a cautious approach

“For the euro to find additional support there would have to be increasing signs that the ECB is hiking rates more quickly and that it might even be considering 50bp steps. However, there are no signs of that happening as yet.”

“I can imagine the euro to slowly be taking a wait-and-see approach in the area around 1.07.”