Euro Pressured Near $1.1600 as Hawkish Fed Expectations and HICP Data Loom

The euro remains under pressure near $1.1600 as a firmer US dollar, driven by hawkish Federal Reserve expectations, weighs on the currency.

Investors are awaiting the release of Eurozone Harmonised Index of Consumer Prices (HICP) data, which is expected to show a slight easing in inflation but elevated core inflation figures.

A stronger-than-expected HICP reading could support the euro and narrow rate differentials between the Eurozone and the US, while a weaker print could trigger risk-off volatility.

The market's cautious stance ahead of the release has led to EUR/USD trading near $1.1600, with technical analysts noting that a sustained break below this level could open the door to further losses.