Economists at MUFG Bank are maintaining a long EUR/USD trade idea.

US CPI report on Wednesday is the next key focus

The EUR is proving resilient in the near term to the disappointing economic data flow from the Eurozone with EUR/USD continuing to trade towards the top of this year’s range between 1.0500 and 1.1000. The price action is giving us more confidence that the next move higher for the pair will be to the upside.

US CPI report on Wednesday is the next key focus for US rates and the USD and poses downside risks if there is more evidence that the super core measure of inflation is slowing as well as energy and food inflation.