EURUSD: Flash HICP could cap gains but no catalyst for a meaningful retracement

Barclays discusses EURUSD outlook for the week

Barclays Capital Research discusses EURUSD Outlook and thinks that the EURSD will likely hover around the upper end of the range.

They say:

"Although fundamentals continue to favor some USD rebound over the forecast horizon, we see no catalyst for a meaningful retracement this week"

They add:

"Recent EUR strength, however, is likely to dampen inflation and cap EUR yields. In that respect, flash HICP inflation (Wednesday) will be important. A larger than expected moderation (Barclays 1.2% vs consensus 1.3%, previous 1.4%) could cap further EUR gains, amid overbought EUR conditions, in or view".

The report is from eFX.

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