EUR/USD Seesaws Ahead of Crucial German Inflation Data

The EUR/USD pair is trading marginally lower at around 1.1455 during the early European session on Thursday.

This comes after a strong recovery move in the last two trading days, with investors awaiting the German flash Harmonized Index of Consumer Prices (HICP) data for July.

The estimates suggest that the German headline HICP rises at a stronger pace of 2.8% Year-on-Year (YoY) against the previous reading of 2.4%, and grows by 0.8% on a monthly basis after declining by 0.2% in June.

A strong reading would boost European Central Bank (ECB) interest rate hike expectations, with investors also focusing on the preliminary German and Eurozone Q2 Gross Domestic Product (GDP) data during the day.