The EUR/USD pair concluded the trading week at 1.1868, maintaining a narrow sideways range for the fourth consecutive session. This period of consolidation reflects a cautious market sentiment as investors await the release of the January US Consumer Price Index (CPI) report. Market forecasts anticipate a slowdown in headline inflation to 2.5% year-on-year, down from the previous reading of 2.7%. The upcoming data is expected to significantly influence Federal Reserve (Fed) policy expectations and the future path of interest rates. Currency traders are currently adopting a wait-and-see approach, hesitant to take significant positions until the inflation trend becomes clearer. The CPI release is considered a high-impact event that typically triggers substantial volatility across the forex and bond markets.
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