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EUR/USD wavers in calm markets with US PPI, Retail Sales on tap

January 14, 2026

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EUR/USD edges up above 1.1650, but remains close to one-month lows, near 1.1620.
The US Dollar gives away gains ahead of US PPI, Retail Sales data
The pair remains in a bearish channel with one-month lows at 1.1618 in sight.

EUR/USD posts minor gains on Wednesday, trading right above 1.1650 at the time of writing, but still close to one-month lows near 1.1620. The US Dollar maintains a moderate bullish bias in a calm market session, unfazed by the softer-than-expected US core Consumer Prices Index (CPI) data released on Tuesday.

Figures from the US Bureau of Labour Statistics (BLS) revealed that price pressures remained fairly steady in December, against market hopes of an uptick in the core inflation. The US Dollar, however, maintained its mild bullish tone, as the data did not change the Federal Reserve’s (Fed) monetary policy expectations. Futures market is practically fully pricing a steady interest rate decision in the late-January meeting, and the chances of a rate cut in March have dropped to 26% from nearly 40% one week ago, according to the CME FedWatch tool.

Market volatility remains subdued in Europe in the absence of key macroeconomic releases. In the US, Retail Sales data and an array of Fed speakers will be in focus, although traders will keep an eye on the US Supreme Court, which might rule on US President Donald Trump’s tariffs later on Wednesday.