EUR/USD remains steady as the European Central Bank (ECB) focuses on its inflation target, with German Consumer Price Index (CPI) figures in the spotlight. The currency pair is trading around 1.1800, showing little movement after a brief dip following comments from ECB President Christine Lagarde.
Lagarde's remarks during a European Parliament hearing emphasized the ECB's successful efforts in curbing inflation, with price growth expected to stabilize at the 2% target in the medium term. She also predicted that food inflation will ease and stabilize slightly above 2% by late 2026. Lagarde's data-dependent approach and emphasis on agility reinforce the idea of a prolonged pause in monetary policy, which could limit immediate support for the Euro.
However, the Eurozone's economic outlook is mixed. The Economic Sentiment Indicator declined in February, falling below expectations, while Consumer Confidence remains in negative territory. Traders are now eagerly awaiting the preliminary German CPI readings, due on Friday, for further insights.
Meanwhile, the US Dollar is regaining strength as investors look beyond trade policy uncertainties. The US Dollar Index (DXY) is trading near 97.70, supported by the belief that Washington will maintain its trade agreements despite the Supreme Court's decision challenging parts of President Donald Trump's tariff framework. The Federal Reserve is expected to keep interest rates unchanged, which further stabilizes the US Dollar in the short term.
The Euro's performance against other major currencies is also noteworthy. The table provides a snapshot of the Euro's percentage change against various currencies, with the Swiss Franc being the strongest against the Euro today. The heat map offers a visual representation of these percentage changes, showing the base and quote currencies for each pair.
