US CPI Data Could Influence EUR/USD Movement, Analysts Say

Analysts are observing the potential impact of United States Consumer Price Index (CPI) data on the EUR/USD currency pair. A 'soft' CPI print, indicating lower-than-expected inflation, could lead the EUR/USD to test previous highs around 1.1580, according to ING's Chris Turner.

However, further significant gains for the pair may be constrained by other upcoming economic indicators, the Jackson Hole symposium, and the Federal Reserve's mid-September policy decision.

The Euro's upward potential is also being capped by ongoing tensions in the Gulf, which are contributing to European natural gas prices remaining above €60 per megawatt-hour. While some geopolitical efforts suggest improved relations between the US and Iran, clarity remains limited.

Key Facts

• Upcoming US Consumer Price Index (CPI) data is being watched for its potential impact on the EUR/USD currency pair.
• ING's Chris Turner suggests that a soft US CPI reading could enable EUR/USD to challenge last week's high of 1.1580.
• Factors such as high European natural gas prices, geopolitical tensions, and upcoming Fed decisions may limit further EUR/USD gains.
• The Jackson Hole symposium and further data releases are expected before the Federal Reserve's mid-September policy announcement.
• Daily studies for EUR/USD are unwinding overbought readings, with support expected at 1.1515, extending to 1.1500/1.1482.