EUR/USD: Will the US inflation data be the trigger for Dollar's come back?

The single European currency remains for one more day firmly above the level of 1,07 having managed to show particular strength secure this level  which it managed to break upward since the beginning of the week.

A set of European officials in their statements yesterday maintained the climate of the European Central Bank's hawkish policy regarding the continuation of interest rate increases, something which did not leave room for the US currency to gain some ground.

As I mentioned in yesterday's article as a most expected  the fluctuation of the exchange rate was in a limited range and although some new highs were noted they were at a very close prices without breaking any critical levels.

The European currency found support not only from European Central Bank officials but also from US debt prices which are struggling to find higher levels again.

Ever since the US Federal Reserve has scaled back its aggressive rate hike policy and hinted that the momentum of rate hikes will slow down significantly, the US currency has come into question.

Since the actions of both major Central banks are all about containing inflationary pressures , today's announcement on the path of inflation in the United States is of particular interest and may act as a trigger for some big move especially if the numbers will be out of the estimates.

So In view of such an important announcement, the waiting attitude is the most appropriate.

It should be noted here that given the recent strong momentum of the European currency any surprise announcement indicating that strong inflationary pressures remain in the United States is expected to have a stronger impact on markets than the oposite. Something that may bring the US dollar back to the fore again.