For the past four trading sessions, the EUR/USD has been consolidating around 1.1860.
The Euro is up on optimism following the ECB’s hawkish stance, while German data is being scrutinized.
The US dollar index held stable near 92.30, a 13-week high.
On Tuesday morning’s Asian session, the EUR/USD shows slight gains. Near the daily highs of 1.1880, the pair is facing significant resistance.
The EUR/USD currency pair is currently trading at 1.1865, up 0.05 percent on the day.
The US Dollar Index (DXY), which measures the performance of the dollar versus six major currencies, is unchanged at 92.2.
After the June Survey of Consumer Predictions revealed that median inflation expectations for the next 12 months jumped to 4.8 percent, investors remain bullish on the US dollar.
The euro, on the other hand, held its ground versus the dollar after the European Central Bank (ECB) said that it would adopt a new strategy at its next meeting on July 22.
The ECB will begin tapering its pandemic-related asset purchases after its September meeting, according to a Reuters poll, and will stop buying them by the end of March.
Meanwhile, the European Central Bank (ECB) announced last week that it will tolerate inflation above its 2% target.
Investors are currently anticipating the German Harmonised Index of Consumer Prices and the US Inflation Rate./n
