Anna 
The EUR/USD pair is making efforts to stage a modest rebound, edging towards the 1.08 mark, with all eyes on the imminent release of the crucial US Consumer Price Index (CPI).
In a subdued session yesterday, market movements for the pair unfolded as anticipated, confined within a tight trading range around 1.0750. The lack of significant developments in the agenda prompted investors to exercise caution, refraining from aggressive positioning ahead of pivotal data releases and impending central bank meetings.
Despite the recent resurgence in responsiveness among European currencies, the prevailing downward momentum, observed over the past few days, is poised to persist, particularly if the US inflation data, scheduled for later today, reinforces the current trend.
Attention is now turning to the Federal Reserve meeting scheduled in the next two days, coupled with the European Central Bank’s monetary policy meeting on Thursday. While interest rate adjustments may not be on the horizon, market focus intensifies on the central banks’ statements regarding their perspectives and potential future actions.
Speculation is mounting that the ECB could take the lead in reducing its key interest rate. Should this possibility gain traction, the euro may face continued uncertainty, struggling to regain the bullish momentum observed in November.
Despite these uncertainties, the euro is currently displaying resilience, with the likelihood of a sharp decline appearing limited at present.
A cautious stance is advisable until major news unfolds. However, considerations for purchasing the euro are already in motion, particularly if it experiences a notable dip below 1.07, signaling an anticipated correction.
