EUR/USD should be moved almost solely by the US inflation report today. The pair could drop back to the 1.0650/1.0700 area should US Core inflation come in at 0.4% or 0.5% mont-on-month, economists at ING report.

Euro lacks any solid domestic support

“EUR/USD may slip back to 1.0650/1.0700 should core inflation come in at 0.4% or 0.5% MoM. Anything above that would likely trigger a larger contraction and 1.0600 should be tested.”

“We continue to see downside risks for EUR/USD in the very near term as US data may endorse further Fed hikes and the Euro lacks any solid domestic support.”

See – US CPI Forecast: Preview from 12 major banks, inflation continues to decelerate