The focus is on the inflation data in the Eurozone. An upside surprise on the core inflation rate could lift the Euro, economists at Commerzbank report.

EUR/USD levels should be limited at present

“Whereas the headline rate is likely to have fallen in February, core inflation is likely to have remained stubborn. The ECB had underlined repeatedly that it is keeping a particular eye on the development of core inflation as the underlying price rises are relevant for the ECB.”

“A surprise on the upside might further fuel the rate hike expectations for the ECB and following yesterday’s appreciation against USD, the Euro might receive further appreciation momentum.” 

“For the time being, however, the USD side should be able to stand its ground so that scope for higher EUR/USD levels should be limited at present.