The EUR/USD pair has had a tough time taking advantage of a slight recovery from the prior day’s low of around 1.1780-1.1775, still holding within a tight range during Wednesday’s Asian trading. Currently, it’s hovering near the 1.1815 mark, showing little change today, as traders eagerly anticipate the upcoming Eurozone Consumer Inflation Report.
Preliminary estimates indicate that the Harmonized Index of Consumer Prices (HICP) may drop to 1.7% year-on-year for January, down from 1.9% in the previous month. However, the core index is expected to hold steady at 2.3% year-on-year. The European Central Bank (ECB) views this dip as a temporary shift, signaling no immediate need for monetary policy adjustments. Still, these figures could sway the common currency and influence the EUR/USD dynamics.
Later in North American trading, traders might look to the US ADP private sector employment report and the ISM Services PMI for additional opportunities. However, immediate reactions to these announcements could be muted as focus shifts to the highly anticipated ECB policy meeting on Thursday. The outcomes of that meeting could significantly impact EUR/USD in the near term.
Meanwhile, a slight decline in global risk sentiment has somewhat bolstered the safe-haven US dollar, creating resistance for the currency pair. On the other hand, there’s a widespread expectation that the US Federal Reserve might lower interest rates two more times in 2026, which could limit the dollar’s strength and support the EUR/USD. This is certainly something to keep an eye on, especially before anticipating any major pullbacks in the EUR/USD pair from last week’s highest levels since June 2021.
economic indicators
Harmonized Consumer Price Index (YoY)
The Harmonized Index of Consumer Prices (HICP) tracks changes in the prices of a set basket of goods and services within the European Monetary Union. The HICP is released on a monthly basis by eurostat, and all member states adhere to a standardized methodology. Year-over-year figures compare current prices to those from the same month a year ago. High numbers typically indicate bullish sentiment for the euro (EUR), while low numbers can be bearish.
Next release:
Wednesday, February 4, 2026 10:00 (Prel)
frequency:
monthly
consensus:
1.7%
Previous:
1.9%
sauce:
eurostat
