EUR/USD Holds Key Support Ahead of US CPI Data

The EUR/USD pair has started the US Consumer Price Index (CPI) week on a cautious note, trading marginally lower at around 1.1610 against the US Dollar during the Asian session.

This follows the US Dollar's tick up as investors turn cautious ahead of the key inflation data release on Friday.

The August US CPI print is expected to show a notable pickup in price pressures, with Deutsche Bank analysts forecasting +0.38% month-over-month (MoM) growth, compared to +0.07% previously.

While core CPI is projected to remain contained at +0.21%, investors will be closely watching the data for cues on the Federal Reserve's monetary policy outlook.