Ahead of the important US inflation data today, trading in EUR/USD was quite sluggish on Monday. Economists at Commerzbank analyze the pair’s outlook. How stubborn is the US inflation? Inflation would have to surprise quite notably to the upside to provide significant positive momentum for USD. Stubborn inflation might not actually point towards a further rate hike, but at least towards ‘high for longer’. And that in turn might at least prevent USD from weakening further. At present, the market expects a soft landing for the US economy, if this image is tainted USD might get under stronger depreciation pressure. See – US CPI Preview: Forecasts from seven major banks, still to the high side of the Fed’s target Source: https://www.fxstreet.com/news/us-cpi-notably-surprise-to-the-upside-required-to-provide-significant-positive-momentum-for-usd-commerzbank-202311140819