EUR/USD Steady at 1.1050 Despite Eurozone Inflation Risks

EUR/USD trades unchanged at 1.1050 as dollar weakness offsets concerns about Eurozone inflation dynamics ahead of Tuesday's CPI release. The pair remains in a tight 30-pip range as traders balance US employment week positioning against European price pressure risks. Markets expect Eurozone inflation to tick up to 2.3% YoY from 2.2%, potentially complicating ECB's modest 7bps easing path priced for 2024. The euro finds support from the wide rate differential outlook, with Fed cuts expected to significantly exceed ECB moves. Technical analysis shows strong support at 1.1000 psychological level, with resistance at 1.1100. The pair's resilience despite inflation concerns reflects dominant dollar dynamics, with US labor market data likely to drive next directional move. A break above 1.1100 could target 1.1150, while disappointing Eurozone data might test 1.1000 support.