Good morning, traders and investors! The EUR/USD pair is starting its Wednesday on a positive note, currently hovering around the 1.1830 mark in early European trading. After facing some headwinds, the common currency seems to be finding its footing, pushing above the psychological 1.1800 level.
All eyes are now turning to the upcoming Eurozone HICP (Harmonised Index of Consumer Prices) release. This key inflation data is a critical indicator for the European Central Bank (ECB) and will heavily influence market sentiment regarding future monetary policy. A higher-than-expected figure could provide further impetus for the Euro, suggesting a stronger economic recovery and potentially bringing forward expectations of monetary tightening.
However, despite the current bullish sentiment, traders are advised to proceed with caution. The market remains somewhat wary following the swift, albeit partial, resolution of a government shutdown. While the immediate crisis has passed, the underlying political uncertainties can still cast a shadow, limiting significant upside moves for major currency pairs like EUR/USD.
So, as we head deeper into the trading day, keep a close watch on that HICP data. It could be the catalyst that either propels EUR/USD higher or sends it back below recent support levels. Stay tuned and trade wisely!
Source: Original Article
