EUR/USD attracts some follow-through buying on Thursday amid modest USD weakness.
Reduced bets for an aggressive ECB policy easing underpin the Euro and also lend support.
Traders now look to key inflation figures from the Eurozone and the US for a fresh impetus.
The EUR/USD pair is seen building on the previous day's goodish rebound from sub-1.0800 levels, or a one-week low and gaining some positive traction during the early European session on Thursday. Traders, however, might opt to wait on the sidelines ahead of a slew of inflation reports from Germany, France, Spain and the United States (US), which will be followed by the flash Eurozone CPI print on Friday. In the meantime, reduced bets for rapid interest rate cuts by the European Central Bank (ECB) continue to act as a tailwind for the Euro.
Apart from this, a modest US Dollar (USD) downtick is seen as another factor lending some support to the EUR/USD pair. Any meaningful downfall for the Buck, however, seems limited in the wake of speculations that sticky inflation and a still-resilient US economy should allow the Federal Reserve (Fed) to keep interest rates higher for longer. Apart from this, a softer risk tone could benefit the Greenback's relative safe-haven status and might contribute to capping gains for the currency pair. This warrants some caution before placing fresh directional bets.
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