EUR/USD eyes 1.0800 as German CPI data looms, inflation concerns persist

EUR/USD trades near 1.0785, showing limited movement as markets await German state CPI readings later today. Germany's inflation continues hovering above the ECB's 2% target, with June's headline CPI at 2.0% year-over-year while core inflation remains elevated at 2.7%. July's headline inflation is forecast to ease to 1.9%, potentially offering some relief to ECB policymakers. The persistent core inflation above target complicates the ECB's monetary policy stance, limiting scope for rate cuts. Technical indicators show EUR/USD consolidating within a tight 1.0770-1.0800 range, with immediate resistance at 1.0800 and support at 1.0750. A softer-than-expected German CPI reading could pressure the euro below 1.0750, while any upside surprise might push the pair toward 1.0820. Traders remain cautious ahead of the data release, with the inflation dynamics crucial for ECB policy expectations.