Ella 
EUR/USD holds steady as markets await important economic events this week.
Focusing on the US Consumer Price Index, inflation is expected to slow down at both the monthly and annual rates.
The European Central Bank’s interest rate decision has become the focus, and market speculation that the European Central Bank will adjust interest rates is affecting the euro.
EUR/USD failed to strengthen, inching down 0.02%, but still hovering around 1.0850, with EUR/USD holding between dynamic support and resistance, the daily moving average range.
EUR/USD hovers around 1.0850 as markets focus on upcoming economic data
Economic data from Europe and the United States were light as market participants prepared for Wednesday’s U.S. inflation data and Thursday’s European Central Bank (ECB) monetary policy decision.
The U.S. consumer price index (CPI) in March is expected to increase by 0.3% on a monthly basis, down from 0.4% in February, while the annual inflation rate is expected to rise to 3.4% from 3.2%. Core inflation, which excludes volatile food and energy prices, is expected to fall to 0.3% from 0.4% on a monthly basis and to 3.7% on an annual basis from 3.8%.
The European Central Bank is expected to keep interest rates on hold on April 11, but chances are growing that President Christine Lagarde and others may need to ease policy in June if they want to achieve a soft landing for the economy.
This would widen the interest rate differential between the Eurozone (EU) and the United States, favoring further downside for EUR/USD.
