USD awaits inflation data for support amid pressure
Yesterday we saw minimal action on the markets with a quiet data schedule contributing to the main pairs operating in very narrow ranges, although the dollar was holding a slightly softer tone. This can partly be attributed to remarks by Fed Chair Powell that the central bank is committed to containing inflation which has surged over the past 12 months as well as a number of regional Fed Presidents calling for a faster removal of monetary policy support.
As we get underway this morning EUR/USD opens above the midpoint of $1.13-1.14, GBP/USD remains in the bottom half of $1.36-1.37 and EUR/GBP continues to trade between 83-84p.
Looking ahead to today, US CPI inflation data is the main release of note, above consensus print may provide the dollar with some momentum. Elsewhere, Eurozone industrial production is projected to have increased by 0.5% in November. Barring any major surprises though, another muted trading day is expected.