Softer Eurozone Inflation Predicted to Spark Dollar Rally

Analysts at ING predict that if eurozone inflation data comes in softer than expected, the euro could depreciate to 1.1600 against the U.S. dollar.

This forecast is based on the assumption that a lower-than-anticipated Consumer Price Index (CPI) reading would reinforce expectations of a more accommodative European Central Bank (ECB), leading to a weakening euro.

The current EUR/USD pair trades around 1.17, and a soft CPI print could trigger a decline toward the 1.1600 support level.