European Central Bank member Isabel Schnabel delivered a hawkish counteroffensive on Wednesday after a slew of dovish comments from other ECB members.

The Euro traded on the strong side after Schnabel’s comments, probably since her December remarks had suggested she might have turned more dovish. Any impact on the Euro shouldn’t be very last longing, especially considering the polarising US CPI risk event today.

EUR/USD may stabilise around current levels unless US CPI surprises on the upside (not our base case), although the near-term view for the pair is for rangebound trading.