EUR/USD: Dollar Stays Elevated Ahead of Inflation Report

The latest inflation data is due today and tension has already built up in the greenback.

• The EUR/USD pair is sitting quietly near weekly highs as currency traders anticipate the latest inflation report. The core personal consumption expenditure index is due out today. The figures are the Federal Reserve’s preferred measure of inflation and a key gauge for price increases.
• In this light, the euro floated around $1.09 this morning. Over the past week, the greenback has advanced by 150 pips, or 1.5%, against its European counterpart on signs of easing banking-sector pressures and improving market sentiment.
• Back to today’s data - markets expect that the annual rate of the Fed’s favorite inflation metric has held steady at 4.7%. If so, that would add to the string of mixed economic news after yesterday’s weekly jobless claims report indicated 198,000 people filed for unemployment benefits.