The United States will release tomorrow at 13:30 GMT the consumer price index (CPI) data for the month of January. The EUR/USD remains vulnerable as CPI is not a threat to the US dollar in the opinion of analysts at TD Securities.
“The overall CPI was probably held down by a decline in gasoline prices in January; our 0.1% forecast is below the 0.2% consensus. The 12-month change probably rose 0.1 points to 2.4%.”
“We expect the 12-month change in core prices to fall 0.1 points to 2.2%, even with a 0.2% m/m rise, although it is a close call between 2.2% and 2.3%.”
“CPI presents no threat to the USD maintaining its high altitude. We are particularly mindful of EUR/USD and the 1.0879/1.0925 support zone, where we think it remains vulnerable to break lower in the coming weeks.”