EUR/USD came within a touching distance of 1.0900 in the early American session on Tuesday but managed to erase its daily losses. The pair fluctuates in a tight channel below 1.0950 in the early European session on Wednesday.
The data from the US showed on Tuesday that annual inflation, as measured by the change in the Consumer Price Index (CPI), ticked up to 3.2% in February from 3.1% in January. On a monthly basis, the Core CPI, which excludes volatile food and energy prices, rose 0.4%, matching January's increase and coming in above the market expectation of 0.3%.