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Soft US CPI could buoy EUR/USD toward recent 1.1580 peak

ING says a softer US consumer inflation print could lift EUR/USD to challenge the 1.1580 level, though option pricing suggests limited one-day upside and European natural gas costs may cap gains.

Reported · Written up by our desk · Major Pairs

ING’s Chris Turner said EUR/USD has stayed “lacklustre” despite better euro zone activity data and upside surprises, with the euro weighed by elevated European natural gas prices and ongoing tensions in the Gulf.

Turner pointed to a scenario in which a soft US CPI reading gives EUR/USD room to test last week’s 1.1580 high, noting that it is “about the extent of a move priced into one-day straddle options.”

Further progress may depend on additional upcoming data and the Jackson Hole symposium before the Federal Reserve’s mid September decision, with traders also monitoring the Middle East situation as it relates to energy prices.

Latest closeNat gas $2.748 ▼1.6%|EUR/USD 1.155 ▼0.1%

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