EUR/USD oscillates in a narrow range around 1.0760 ahead of the US CPI data

EUR/USD consolidates its losses around 1.0764 ahead of key Fed and ECB events.
The European Central Bank (ECB) is widely expected to maintain its Deposit Facility Rate at 4.0%.
The markets have priced in that the FOMC to hold the rate steady at 5.25%–5.50% at its December meeting on Wednesday.
Investors will focus on the US CPI data, due later on Tuesday.

Lallalit Srijandorn FXStreet

The EUR/USD pair oscillates in a narrow trading range above the mid-1.0700s during the early Asian session on Tuesday. Traders prefer to wait on the sidelines ahead of key events in the US and Eurozone. The Federal Open Market Committee (FOMC) will announce the interest rate decision on Wednesday and the European Central Bank (ECB) is broadly expected to keep its Deposit Facility Rate at 4.0% on Thursday. These events could trigger volatility in the market. The pair currently trades around 1.0764, unchanged on the day.

The markets anticipate the ECB to keep interest rates at record highs to bring inflation down to its 2% target. The ECB is widely expected to maintain its Deposit Facility Rate at 4.0%, and markets will be watching the Press Conference to see how hawkish or dovish remarks the ECB will deliver.

The stronger-than-expected US labor market report last week fueled investor optimism about the economy's soft landing and boosted the S&P 500 and the Nasdaq to their highest closing levels since early 2022. On Tuesday, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data, which is expected to tick up in November from 0.0% to 0.1% MoM while the annual inflation figure is expected to ease from 3.2% to 3.1% YoY.

Last week, the Federal Reserve (Fed) Chairman Jerome Powell pushed back on market expectations for aggressive interest rate cuts, adding that it would be premature to declare victory over inflation. However, markets believe that the Fed is done hiking and could start cutting as soon as March 2024. The markets have priced in that FOMC to hold the rate steady at 5.25%–5.50% at its December meeting, according to the CME FedWatch Tool.

Looking ahead, market players will monitor the US CPI data on Tuesday, followed by the Producer Price Index (PPI) on Wednesday. November's PPI figure is expected to improve from -0.5% to 0.1% MoM. The attention will shift to the FOMC interest rate decision at 19:00 GMT on Wednesday. Traders will take cues from these events and find a trading opportunity around the EUR/USD pair.

EUR/USD

Overview
Today last price	1.0764
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.0764

Trends
Daily SMA20	1.087
Daily SMA50	1.0704
Daily SMA100	1.0764
Daily SMA200	1.0823

Levels
Previous Daily High	1.0801
Previous Daily Low	1.0724
Previous Weekly High	1.0895
Previous Weekly Low	1.0724
Previous Monthly High	1.1017
Previous Monthly Low	1.0517
Daily Fibonacci 38.2%	1.0753
Daily Fibonacci 61.8%	1.0771
Daily Pivot Point S1	1.0725
Daily Pivot Point S2	1.0686
Daily Pivot Point S3	1.0648
Daily Pivot Point R1	1.0802
Daily Pivot Point R2	1.084
Daily Pivot Point R3	1.0879

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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