Investors await US inflation figures at 12:30 GMT to gauge potential Federal Reserve policy shifts amid steady USD demand.
The EUR/USD pair remains range-bound at 1.1545 in Asian trading, reflecting cautious sentiment before the US Consumer Price Index release. The US Dollar Index hovers near 99.96, with markets pricing in minimal volatility ahead of the data.
May’s headline CPI is expected to rise to 4.2% year-on-year from April’s 3.8%, while core CPI may accelerate to 2.9% from 2.8%. The figures could influence the Federal Reserve’s rate trajectory, with traders seeking clarity on future hikes.
In Europe, focus shifts to Thursday’s ECB decision, where a 25 basis points rate increase is widely anticipated. Elevated energy prices have reinforced expectations for hawkish guidance from the central bank.