Ella 
In early Asian trading on Monday, the U.S. dollar (USD) rebounded slightly while EUR/USD weakened. The US PCE price index for January will be in focus this week. The data could trigger market volatility. As of press time, EUR/USD was trading at 1.0819, down 0.03% on the day.
Minutes of the January 30-31 Federal Reserve meeting stated that interest rates may be at the peak of this tightening cycle. Federal Reserve (FED) officials will pay attention to the latest economic data released later to determine whether the current stickiness of U.S. inflation is temporary or sustained. The U.S. core personal consumption expenditures price index (Core PCE) released on Thursday may provide some signals on the path of U.S. inflation. Weaker-than-expected economic data could weigh on the U.S. dollar and be bullish for EUR/USD.
ECB policymakers hope to pay attention to first-quarter economic data, which confirms that inflationary pressures have declined, but higher wage increases will allow them to reduce the restrictiveness of current monetary policy to a certain extent. ECB members agree that policy will be eased, but there is no clear consensus on the exact timing. Several European Central Bank policymakers will wait for the release of more data before deciding whether to ease monetary policy.
Market participants will be closely watching the U.S. fourth-quarter (Q4) annual gross domestic product rate due out on Wednesday. On Thursday, German retail sales for January and preliminary German consumer confidence index for January will be the highlights of the week. The highlight of the week will be Thursday’s U.S. core personal consumption expenditures price index (Core PCE). Traders will look to this data for EUR/USD trading opportunities.
