• EUR/USD remains trapped in constrained intraday cycle near 1.0750.
• Tuesday’s EU CPI inflation print warned of an uptick in EU inflation.
• Wednesday brings a packed docket with EU PMIs, PPIs, and US ADP jobs.

EUR/USD spent Tuesday in a churning pattern, cycling just below 1.075 as the pair grapples with finding momentum. Key labor data from the US looms ahead on Friday, and EU economic figures remain scattered throughout the back half of the trading week.

Pan-EU HCOB Core Harmonized Index of Consumer Prices (HICP) inflation held steady at 2.9% MoM in June, holding steady at the previous figure and snubbing the forecast decline to 2.8%. Overall YoY HICP inflation eased to 2.5% as forecast, ticking down from the previous 2.6%, but European inflation figures remain notably above the European Central Bank’s (ECB) 2% target band.

Fedspeak from Federal Reserve (Fed) officials helped to bolster investor mood during Tuesday’s US market session, with key policymakers giving a firmer nod to recent improvements in US inflation data. US JOLTS Job Openings also rose slightly in May, climbing to 8.14 million from the forecast steady print at 7.91 million. Signs of extending slack within the US labor market are beginning to appear, giving rate-cut-hungry financial markets reason to hope that the Fed might get pushed towards a rate trim sooner rather than later.