EURUSD continues to rise ahead of US CPI data.

The EURUSD is up for the fourth day in a row, trading around 1.0760 during the Asian session on Wednesday. The pair has gained ground since an anonymous source reported. That the European Central Bank (ECB) had upped its inflation estimates internally. Ahead of the ECB’s policy meeting on Thursday.

The EURUSD risen since an anonymous source said that the ECB had upped its inflation forecasts for 2024.

According to Reuters, the source claimed that the European Central Bank’s (ECB) quarterly estimates. Which are scheduled to be released on Thursday. The forecast which will be presented to the Fed’s Governing Council on Wednesday. Anticipates inflation of more than 3% in 2024.

This forecast defies forecasts of a minor decrease in inflation. The revised 2024 prediction exceeds the central bank’s 2% inflation objective and exceeds the 3% forecast provided in June. It is also higher than the 2.7% number obtained from a Reuters survey of economists.

According to the source, the rate decision for the ECB meeting was still a difficult topic. And official suggestions had not yet been made. The strong estimate of inflation topping 3% in 2024. On the other hand, lends weight to the case for a rate rise.

It appears to corroborate fears. That lowering inflation may be more difficult than originally thought. This projection emphasizesthe probable need for the ECB to take action. To combat increasing inflationary pressures.

On the other hand, the EURUSD pair may face difficulties. As traders anticipate the publication of inflation data from the United States (US). Which is expected for later in the North American session. This data release has the potential to have a significant influence on currency. Markets, potentially impacting the direction of the EURUSD.

Market caution ahead of US inflation data may strengthen the US Dollar (USD).

The US Consumer Price Index (CPI) is expected to rise 0.5% month on month, a 0.5% increase over the previous month’s reading of 0.2%. Furthermore, the Core CPI statistic, which excludes volatile food and energy costs, is predicted to stay constant at 0.2%.

These inflation numbers give essential information about the current situation of price changes. affects the US economy and can have a significant influence on market sentiment and the Fed’s (Fed) policy decision. Investors have been discussing the possibility of the US Federal Reserve (Fed) raising interest rates. By 25 basis points (bps) in either the November or December meetings.

Furthermore, the Fed is expected to keep interest rates higher for an extended period of time. Inflation might bolster hawkish mood even further, perhaps contributing to a higher US Dollar (USD) vs the Euro (EUR) as the Fed takes steps to battle increasing prices.

The US Dollar Index (DXY), which measures the performance of the US Dollar (USD) against a basket of the world’s main currencies, is fighting to end a three day losing streak. At the time of writing, the spot price is trading at 104.60. Furthermore, the US dollar is expected to stay resilient as economic activity in the US expands further.

The US Retail Sales growth numbers for Thursday are expected to show a small decrease. for August anticipate a 0.2% improvement over the previous month’s 0.7% gain. These numbers may provide insight into consumer spending habits and have the potential to affect market.