EUR/USD: Hot inflation in eurozone could rescue the euro from strong NFP

EUR/USD seems to have steadied around 1.1300 ahead of key data releases. According to FXStreet’s Eren Sengezer, the shared currency could find demand on a hot inflation report.

Eyes on EU inflation, US NFP data
“The market expectation points to a Core CPI reading of 2.5% on a yearly basis in December, down from 2.6% in November. The annual CPI is forecast to edge lower to 4.7% from 4.9%. In case the data reveal stronger-than-expected inflation in the euro area, the shared currency could stay resilient against its rivals on the possibility of the ECB acting quicker to pull monetary support in the face of persistent price pressures.”

“A bigger-than-forecast increase in December NFP could ramp up rate hike chances and allow the greenback to end the week on a firm footing against its peers.”

“In case US T-bond yields start to push higher after NFP data, the first target on the downside aligns at 1.1270 (static level) ahead of 1.1240 (static level) and 1.1200 (psychological level).”

“Resistances are located at 1.1320 (50-period SMA), 1.1340 (static level) and 1.1360 (static level, post-ECB high).”

Source: www.fxstreet.com