EUR/USD Forecast: Euro could lose traction on a hot US PCE inflation reading

• EUR/USD stays below 1.0850 in the European morning on Thursday.
• German and US inflation data will be watched closely by market participants.
• The pair faces key near-term support level at 1.0800.

EUR/USD recovered from the weekly low it touched below 1.0800 and ended the day virtually unchanged on Wednesday. The pair fluctuates in a tight range near 1.0850 early Thursday as investors await key data releases.

The data from France showed on Thursday that the Consumer Price Index (CPI) rose 0.9% on a monthly basis, surpassing the market expectation for a 0.7% increase. This reading helped the Euro edge higher in the early European session.