The highlight of today's Eurozone data calendar is the January CPI release where the headline rate is expected to fall to 2.7% year-on-year and core to 3.2% YoY –  the latter the lowest since March 2022.

Given the successful disinflation trends and weak activity data, it is therefore more difficult for the European Central Bank than the Fed to push back against early easing expectations. That is why markets still attach a 60% chance to an April rate cut from the ECB.

EUR/USD support is currently under pressure at 1.0790/1.0800 and a break opens up the 1.0715/1.0725 region.