The EUR/USD pair was at a standstill ahead of Eurozone’s Consumer Price Index (CPI) for June. The pair was trading at 1.18093.
Eurozone Economic Expectations
EU’S employment rate numbers for the first quarter of 2021 came in higher. The seasonally adjusted employment rate of people aged 20-64 in the EU came in at 71.9% in the first quarter of 2021.
The labor market slack which compromises all people who have an unmet need for employment stood at 14.8%. The unemployment rate came in at 7.1% of the extended labor force.
The EUR/USD pair will react to EU’s Consumer Price Index (CPI) for June. Being the key inflation data, investors are eyeing the numbers to gauge whether inflation would surpass estimates.
Eurozone’s headline CPI data for June is expected to come in at 1.9% on a year-on-year basis. The monthly headline CPI for June is expected to remain unchanged at 0.3%. Core CPI is expected to decline to 0.9% YoY while the monthly core CPI is expected to come in 0.1% higher.
US Economic Outlook
Weekly initial jobless claims in the United States slumped to 360,000. This was a 26,000 decline from the upward revised 386,000 figure in the previous week. According to the Labor Department, continuing claims fell by 126,000 to 3.24 million.
The EUR/USD pair will react to the US retail sales data for June which are due later in the day. The headline retail sales are expected to have declined 0.4% on a month-on-month basis. The core retail sales for the same month are expected to jump 0.4%.
Federal Reserve’s Chairman Jerome Powell in his semi-annual appearance before Congress stated that the Fed is not ready to scale down its monetary stimulus. According to Powell, despite the jump in inflation data for June, the US economy is not yet stable, and the inflation surges could be transitory.