EUR/USD Consolidation Ahead of Key Data Releases

The EUR/USD currency pair has been in a state of consolidation following the US dollar's slightly positive start to the week. Despite America's economic war on Iran not triggering any panic, investors remain cautious ahead of key data releases this week, including US inflation figures on Wednesday and Kevin Warsh's speech at the Jackson Hole Symposium on Friday.

The relative calm in energy and bond markets has allowed equities to make a slightly positive start, but risks to the EUR/USD forecast still remain tilted to the upside. The technical analysis suggests that the current pause could be a bear trap, with the pair potentially breaking above 1.1700 and targeting 1.1800.

The Ifo index in Germany has risen to a one-year high of 88.8 in August, despite concerns over the oil shock. This has led to the DAX trading near record highs and the euro refusing to succumb to pressure.