EUR/USD steady as Eurozone inflation data looms, ECB outlook unchanged

EUR/USD remains range-bound near 1.0540, showing minimal movement as traders await today's Eurozone inflation figures. Markets anticipate the data will have limited impact on the European Central Bank's current stance, with no rate changes expected throughout 2025. The ECB has maintained a cautious approach following its December rate cut to 3.0%, citing persistent economic uncertainties. Today's inflation release, expected to show annual CPI at 2.4%, could provide short-term volatility but is unlikely to alter the broader monetary policy trajectory. Technical indicators suggest EUR/USD is consolidating between support at 1.0520 and resistance at 1.0580. The pair's muted reaction reflects market consensus that the ECB will remain on hold, maintaining its wait-and-see approach. Traders should monitor any significant deviation from consensus inflation figures, which could trigger a temporary breakout from the current trading range.