The EUR/USD pair grabbed the attention of traders today on the back of the key economic reports that were released in the eurozone. According to final estimates, the inflation rate in the eurozone matched the expectations of the analysts and the flash reading. In annual terms, the consumer prices grew by 1.5% and on a monthly basis they increased by 0.1%. The inflation rate still lags behind the ECB target level of 2%. Moreover, the price growth declerated, which may prompt the European financial watchdog to keep the current monetary policy stance.
The inflation data from the Eurozone came in line with the forecast, and bearing in mind its stabilization at a quite low level, the euro has little chance for strengthening. Now, it all depends on the industrial data from the United States that are expected to show a significant rise. It will help the greenback to recoup some of its losses and the single European currency may decline to 1.1745.
Tomorrow, the ECB President Mario Draghi will deliver speech, which can provide support to the single European currency. However, there is a possibility that Mr. Draghi will reiterate the necessity to keep the interest rate at the zero level, bearing in mind the sluggish inflation. That is why the EUR/USD pair is likely to end this trading week with bearish bias.