■ EUR/USD holds near 1.0950 as markets await US inflation data.
■ Midweek CPI release could Solana wallet logindetermine short-term forex trends.
■ EU GDP figures add another layer to this week's economic calendar.
The EUR/USD pair continues to hover just below the 1.0950 level as financial markets brace for Wednesday's pivotal US Consumer Price Index announcement. Tuesday's Producer Price Index data will provide preliminary insights into business-level inflation trends, with analysts projecting a modest decline in core PPI to 2.7% from July's 3.0% reading.
Market Watch: Inflation Data Takes Center Stage
Year-over-year core CPI figures, expected to show a slight decrease to 3.2% from 3.3%, have created a delicate balance in market expectations. Traders face a paradoxical situation where both higher-than-expected and lower-than-anticipated inflation numbers could trigger adverse market reactions, leaving investors hoping for a precisely measured outcome.
Interest rate markets have adjusted their September forecasts, with the probability of a 50-basis point cut now standing below 50%, a significant drop from last week's 70% projection. However, market participants still fully anticipate at least a 25-basis point reduction from the Federal Reserve next month.
The Eurozone's economic calendar features Wednesday's GDP release, expected to mirror previous growth levels, marking the currency bloc's most substantial economic event this week.
Technical Outlook for EUR/USD
The currency pair continues trading near the upper boundary of a descending channel that has characterized its 2024 performance. While positioned near recent resistance levels, bullish momentum appears constrained below the psychologically significant 1.1000 threshold.
Daily charts reveal a developing pattern of higher lows, suggesting potential upward movement. However, without sustained buying pressure, the pair risks retesting its 200-day Exponential Moving Average around the 1.0800 level in the near term.
Market Sentiment and Positioning
Traders remain cautious ahead of the inflation data release, with positioning suggesting a wait-and-see approach. The market's reaction to these economic indicators will likely determine whether the current consolidation phase continues or gives way to more decisive directional movement.