EUR/USD holds steady in tight range – BBH

EUR/USD is trading directionless within 1.1720–1.1780, but the ECB’s steady hand is keeping the pair supported. With Eurozone inflation hovering around the 2% target and core CPI stable, the policy backdrop continues to favor the euro’s underlying uptrend, BBH FX analysts report, BBH FX analysts report.

Eurozone inflation aligns with ECB target

"EUR/USD is directionless within a 1.1720-1.1780 range. The ECB is in a good place to keep rates on hold as Eurozone inflation remains close to the ECB’s 2% target. In September, both headline and core CPI matched consensus."

"Headline rose 0.2pts to 2.2% y/y, core printed at 2.3% y/y for a fifth consecutive month, and services CPI ticked up 0.1pts to 3.2%. Bottom line: ECB/Fed policy stance continues to underpin the uptrend in EUR/USD."