EUR/USD steady as ECB's Lane expects services inflation decline

EUR/USD traded flat around 1.0865 following comments from ECB Chief Economist Philip Lane expressing confidence that services inflation will decrease in coming months. Lane's remarks come as Eurozone services inflation remains elevated at 4.0%, well above the ECB's 2% target. The euro showed limited reaction as markets had already priced in gradual disinflation expectations. Current ECB projections indicate services inflation moderating to 2.8% by year-end, supporting the case for measured rate cuts. Technical analysis shows EUR/USD consolidating between 1.0850 support and 1.0880 resistance, with the 50-day moving average at 1.0870 acting as a pivot point. Traders await next week's Eurozone inflation data for confirmation of the disinflationary trend. A break above 1.0880 could target 1.0920, while failure to hold 1.0850 might expose 1.0820 support levels.