Euro stuck awaiting key data

The Euro (EUR) is moving without a clear direction on Monday. In the absence of first-tier macroeconomic releases, the knee-jerk reaction in European markets, dipping into negative territory, and the downbeat Eurozone data are weighing on the Common currency.

With the US markets closed for Martin Luther King's birthday, the US Dollar is picking some bids as the market shifts its focus away from last Friday’s soft US PPI data. The Dollar Index (DXY), however, remains trapped within last week’s trade range, unable to put a significant distance from late December lows.

Traders welcomed December’s unexpected decline in the US Producer Prices Index (PPI), on Friday. These figures have heightened bets for Fed easing, despite the the uptick in the CPI figures seen earlier in the week and Fed officials’ warnings about excessive optimism. US Treasury Yields retreated, with the benchmark 10-year yield dipping below the 4% level, and the US Dollar eased, to close the week practically flat.

This week, the focus will be on the Eurozone Consumer Price Index (CPI) and US Retail Sales data. These figures will give further insight into the Eurozone and US economic outlook and might help the EUR/USD to break the horizontal range that is constraining price action