Euro maintains narrow range below 1.0700

The Euro is trading below the 1.0700 level against the US Dollar, with European stocks maintaining positive performance. US inflation figures are expected to drive market sentiment this week, as the Euro loses its initial shine against the USD.

The dollar’s upward movement to the pivotal level of 106.00 has continued, propelled by a slight improvement in US yields across the curve. The European Central Bank has reaffirmed that inflation needs to quickly return to its target level because it is currently too high.

With domestic price pressures still very strong, the ECB’s tightening campaign appears to be reaching an impasse. The second most traded currency in the world, the euro is the unit of currency for the twenty member states of the European Union that make up the Eurozone.

Maintaining price stability, which entails either containing inflation or promoting growth, is the main responsibility of the European Central Bank. The Harmonised Index of Consumer Prices is a key econometric for the Euro, and the ECB Governing Council decides on monetary policy at its eight annual meetings.