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CPI Is Crunch Time For The EURUSD

On March 12 we have the hotly anticipated US CPI print. So, here's the outlook on the US CPI report coming up. Markets expect headline CPI to rise around 0.4% in February, and core inflation to go up by about 0.3%. Traders are getting more hawkish on rate hikes after January's CPI jump, and they'll be keeping a close eye on February's numbers to fine-tune their predictions.

EURUSD & US CPI

A major risk event is coming up for the US on Tuesday ahead of the Federal Reserve’s interest rate meeting on Wednesday. Although US CPI data is unlikely to change the Fed’s mind for Wednesday it will certainly set the mood and tone.

Will the ECB send the EURUSD lower?

The stage is set for an ECB rate hike of 25bps on Thursday at 1315UK time, with both short term interest rate markets and econ-omists anticipating it. Christine Lagarde's clear signals have solidi-fied expectations for a July rate hike. Yet, the lingering uncertainty remains: What will the ECB reveal about its plans for September?