EUR: Another break above 1.12 is possible – ING

Eurozone-wide CPI figures will be published next Tuesday, and another break above 1.12 for EUR/USD is surely possible into next week’s US payrolls data, FX strategist Francesco Pesole notes.

ECB repricing faces inflation test

“German CPI numbers are published on Monday and the eurozone-wide figures on Tuesday. Inflation has the potential to trigger some hawkish repricing in European Central Bank rate expectations given that Governing Council members recently showed reluctance to give in to easing pressure despite a gloomy economic picture.”

“EUR/USD found some support yesterday, and another break above 1.12 is surely possible into next week’s US payrolls data.”