MARKET OUTLOOK - Euro May Strengthen Further After Inflation Data

Forex - Chris Turner from ING stated that if the Eurozone inflation data comes in higher than expected at 1300 GMT, the Euro could rise further. Turner mentioned, "If the data exceeds predictions, particularly in core inflation, this could dampen the expected scale of interest rate cuts by the European Central Bank this year, especially following the unexpectedly high inflation data from Germany on Monday."

The Euro is maintaining gains obtained after reports that President-elect Donald Trump might soften his stance on trade tariffs. Turner noted, "We believe this is a fair adjustment following the overshoot of EUR/USD downwards last week," suggesting that the Euro could rise to $1.05. The Euro was last seen trading at $1.0422, up 0.3%.