EUR/USD awaits Eurozone CPI data amid inflation concerns

EUR/USD trades cautiously near 1.0800 ahead of today's crucial Eurozone Flash CPI release, with markets expecting headline inflation to remain steady at 2.0% year-over-year. The Core CPI measure is forecast to ease slightly to 2.2% from the previous reading, which could influence the European Central Bank's monetary policy stance. A higher-than-expected inflation print would likely strengthen the euro as it may prompt the ECB to maintain restrictive rates for longer, while softer data could weigh on the currency. Technical indicators show EUR/USD consolidating within a tight range, with immediate resistance at 1.0820 and support at 1.0780. Traders are closely monitoring whether inflation remains sticky above the ECB's 2% target, which would support hawkish policy expectations. The outcome could set the tone for EUR/USD's direction through the remainder of the week, particularly with limited US economic releases scheduled.