ING Sees Break Above 1.16 as US CPI Release Looms

The EUR/USD exchange rate has been slowly rising since July, currently trading around 1.1552 after a weak US payrolls report on Friday reinforced doubts over further Federal Reserve tightening.

ING believes that Wednesday's US CPI release could be the next catalyst for movement in the pair, with analysts expecting July headline CPI to rise just 0.1% month-on-month, below the 0.2% consensus.

If the CPI print is softer than expected, ING sees plenty of scope for another leg of Dollar weakness and expects a break above 1.1600 already this week.