The Euro (EUR) traded quietly around 1.1608 against the US Dollar (USD) during the European session on Friday, with traders eyeing the upcoming US Consumer Price Index (CPI) release. According to FX Street, the pair showed signs of downside risk near 1.1585 as market participants positioned themselves ahead of the data.
Strategists at United Overseas Bank (UOB), Quek Ser Leang and Lee Sue Ann, noted a sharp dip to 1.1591 in EUR/USD, highlighting increasing downside momentum. However, they also pointed out that a sustained break below the 1.1585 level appears unlikely in the short term, suggesting limited further weakness for now.
For Japanese investors, the EUR/USD movement remains critical as it can influence risk sentiment and currency flows in Asia, especially with US inflation data expected to impact global markets today.