The pair EUR/USD remains hesitant about Forex, prior to the release key this afternoon.
In fact, after the sharp fall yesterday, initiated by political considerations around the tax reform of Trump, EUR/USD slows down its movement above the 1.1870.
We have been an attempt to rebound this morning, with a peak-to-1.1909, but the pair falls back to the approach of the publication of the CPI, US, and retains a tone quite neutral in the intraday before the key statistic.
In fact, the low inflation remains a source of concern for the Fed, while she is in the midst of a normalisation of its policy.
Its next meeting is to be held next week, and speculations about an announcement on the reduction of the balance sheet of the Fed drive the markets.
The reading of this publication of the CPI, this afternoon, could, therefore, react in the Forex and impact the EUR/USD pair.
The consensus expects a rebound in the total CPI 0.3% m/m from 0.1% previously, and to 1.8% y/y after a 1.7% CPI core is expected at 0.2% m/m and 1.6% y/y after 0.1% and 1.7%, respectively.
While expectations are generally rising, the disappointment of the proximal interphalangeal joint of yesterday, may suggest a risk of disappointment of the CPI today.
If this is confirmed, EUR/USD may start a correction of the downward movement of the watch, with resistance at 1.1920, 1.1950 and 1.1980.
It will then climb back above 1.2000 to reinforce the upward bias in the short term and possibly continue to increase.
Conversely, if the CPI surprises further to the upside, EUR/USD could go to test the supports of 1.1850 and 1.1825.
A break below 1.1825 could promote a movement in the direction of 1.1775 in a first time.
The pair EUR/USD is currently trading at 1.1890 on the Forex.
Chart EUR/USD H1
See also our charts EUR/USD in real time.