EUR/USD hovering around 1.03 ahead of US CPI report

The price action in the EUR/USD so far today has been covered by 1.0287 to 1.0317. The Euro closed in the US last night at 1.0308. So, as you can see, it has not really strayed too far from that close. The reason for that, as noted a few times before, is all due to the US CPI data this afternoon. If that comes in lower and it brings Fed rate cuts back on the table then of course the Euro might rise, but then again the opposite applies too. So, what are the markets expecting from that CPI data? Well, the consensus is for the monthly core rate to decline slightly, to 0.2% from 0.3%. The core annualised rate is expected to remain unchanged, at 3.3%, but the non-core rate is expected to pick up to 2.9%, from 2.7%. Of course in terms of trading it would be better for us to see an outside number on any of those counts, in order to throw up some decent moves. However, we shall just have to wait and see what is delivered, at 1.30pm GMT. Also, please do not forget; the USD/JPY will as usual, also be very much front and centre of any dollar reaction to the data. The EUR/USD is trading right now at 1.0303