EUR/USD EXTENDS THE WEEKLY REBOUND PAST 1.0900 AHEAD OF US DATA

The buying interest around the European currency remains well and sound and lifts EUR/USD further north of 1.0900 the figure on Wednesday.

EUR/USD looks firm in pre-CPI trade

EUR/USD advances for the second session in a row and looks to consolidate the recent breakout of the key 1.0900 barrier amidst the persistent selling pressure surrounding the greenback.

Indeed, investors keep selling the dollar and favour further strength in the pair as speculation of another soft print in US inflation (due later) might reinforce the perception that the Fed could pause its hiking cycle in May.

From the ECB, there are no changes so far to the idea of a most likely 25 bps rate in May, a view that continues to be propped up by hawkish comments from ECB’s rate setters.

Nothing scheduled data wise in the old continent on Wednesday should leave the attention to the release of US CPI and the publication of the FOMC Minutes later in the NA session.