The CPI data will be realead at 01:30 pm GMT
The greenback appreciates ahead of the release of key data from the US economy. It is expected that CPI inflation accelerated in November to 6.8% YoY from 6.2% YoY. Core inflation is expected to rise to 4.9% YoY from 4.6% YoY. However, there were speculations that inflation may exceed even 7.0% today. If inflation surprises with higher print, the chances of Fed action next week will increase significantly. The market expects that the tapering of the QE program will accelerate and Fed may also decide to signal faster interest rate increases.
EURUSD moves back significantly during today's session. The key support for the pair is around 1.1250, while the resistance is at 23.6% retracement of the recent downward impulse. Source: xStation5
