Soft US CPI Could Fuel EUR/USD Gains Amid Uncertain Markets

EUR/USD has been trading in a lackluster fashion despite better-than-expected Eurozone data, which has failed to provide the euro with significant gains. According to Chris Turner at ING, high European natural gas prices and Gulf tensions are weighing on the Euro.

The US CPI print is expected to be soft, which could allow EUR/USD to challenge last week's high of 1.1580. However, further gains may be limited by upcoming data releases and the Jackson Hole Fed symposium before the mid-September decision from the Federal Reserve.

Eurozone economic numbers have been surprising on the upside, but tensions in the Gulf region are keeping European natural gas prices above €60/MWh, capping the euro's upside potential.