Euro Steadies Against Dollar Ahead of Key Inflation Figures

The euro is expected to stabilize against the dollar in the coming week, with potential for a modest rebound if firm eurozone inflation figures are released.

After falling to graphical support at 1.1360, where July's selloff halted and last Thursday's decline stopped, the pair has found some resistance at 1.1450.

The forces behind the dollar's rally remain in place, with U.S. growth outpacing Europe's and U.S. bond yields holding near their highs, limiting any euro rebound to a tepid one.

Friday's flash eurozone CPI report is expected to show energy costs pushing headline inflation up to 3.7% from 3.2%, with core inflation seen at 2.5% against 2.4% in August.