Key points:
- Euro tops $1.0940 early Tuesday.
- Pair seeks consolidation breakout.
- US CPI to show cool 2.9% for July.
Consumer prices in the US are expected to show price pressures eased under 3.0% for July — a highly positive sign for the economy. (Big if true.)
- The
EURUSD pair was trying to break out of its range-bound trading near $1.09 Tuesday morning, following the first day in green after four straight red sessions. The popular currency trade peaked above $1.0940 for its intraday high and remained well-bid as European markets slowly trickled in and started flickering. The euro is down slightly from its August high of $1.1010. - The big headline event for this week is nearly here — inflation data out of the US will show Wednesday if the pace of consumer prices had continued to move to the downside. The consumer price index report for July is expected to show price growth sank under the 3% milestone to a cool 2.9% clip. If materialized, this reading will be the first to flaunt the 2%-something mark since April 2021 — the build-up for the 40-year inflation peak.
- In this context, markets are holding their breath and treading carefully ahead of the key release. The US dollar was calm to kick off its weekly deals. Across the forex board, the greenback was mostly floating without causing any trouble — the USD/JPY was hugging the flatline for the week at 147.50 to 147.70. And the GBP/USD was by and large moving sideways with a slight deviation to the upside near $1.2770.
