EUR/USD AWAITS US DATA, ECB SPEAKERS

• EUR/USD could see volatility on Thursday with US data and ECB speakers in the line up.
• US factory gate prices and Retails Sales could tone the debate on when the Fed cuts interest rates. 
• In Europe, speakers from the ECB may shed light on when the ECB considers its own rate cut. 

EUR/USD continues trading in the mid 1.0900s after pulling back from a peak at 1.0981 achieved last week. With data releases and events affecting both sides of the EUR/USD pair on Thursday, a cursory glance at the proverbial “crystal ball” suggests some volatility is probable. 

In the US, factory gate inflation and Retail Sales data could tone expectations of when the Federal Reserve (Fed) will start cutting interest rates – a key driver for the US Dollar (USD). 

In Europe, meanwhile, a string of rate-setters from the European Central Bank (ECB) are scheduled to speak with their comments likely to shed light on when the central bank will decide to start cutting its interest rates – a key driver for the Euro (EUR).

The takeaway is that if inflation is seen as stubborn, interest rates will stay high, supporting the currency in question.