EUR/USD steady at 1.0400 as Eurozone inflation hits 2.0% target

EUR/USD remains unchanged around 1.0400 following the release of Eurozone's December preliminary CPI data, which came in at 2.0% year-over-year, matching market expectations and down from November's 2.1%. Core inflation eased to 2.3% from the previous 2.4%, slightly below the forecast of 2.4%. Despite headline inflation reaching the ECB's target, services inflation remains elevated at 3.4%, suggesting persistent price pressures in this sector. The data reinforces market expectations that the ECB will maintain a cautious approach to monetary policy easing in early 2024. Technical indicators show EUR/USD consolidating near the 1.0400 psychological level, with immediate resistance at 1.0430 and support at 1.0370. Traders await upcoming ECB officials' speeches and US economic data for further directional cues, with the pair likely to remain range-bound until clearer monetary policy signals emerge from either central bank.