Euro higher awaiting key news

The Euro (EUR) begins the week on a higher note against the US Dollar (USD) as market participants brace for the release of Eurozone (EU) and United States (US) inflation data late in the week. Besides that, economic growth data in the US could weigh on the Greenback, which treads water as Wall Street opens. The EUR/USD trades at 1.0850, up 0.30%.

EUR/USD rises to 1.0850, with upcoming economic indicators from both sides of the Atlantic in focus

Market participants' sentiment remains mixed. The economic calendar in the EU sees European Central Bank (ECB) speakers crossing the newswires. ECB Stournaras said monetary policy has to remain prudent, inflation has progressed, and that he sees the first rate cut in June. He added that the ECB wants to see more progress on inflation and suggested that they should move rates gradually.

Recently, ECB’s President Christine Lagarde said the central bank has not achieved its goal on inflation and added they must get to 2% inflation sustainably.

Across the pond, the US economic calendar featured housing data for February. New Home Sales rose by 1.5% from 0.651M to 0.661M, less than expected, and witnessed a muted reaction in the EUR/USD pair.

Meanwhile, the EUR/USD could witness some weakness, as an article by Bloomberg suggested that investors are cutting their Euro longs to their lowest level since November 2022 via the Commodities and Futures Trading Commission (CFTC) data.

In the EU, the schedule will feature Flash PMIs, German Retail Sales, and inflation data amongst the largest economies in the bloc. On the US front, Durable Goods Orders on Tuesday, followed by Thursday’s inflation and Gross Domestic Product (GDP) data.