EUR/USD sees establishment above 1.0600 on soaring market mood, Eurogroup meeting eyed

• EUR/USD is looking to sustain above 1.0600 amid positive market sentiment.
• Mounting inflationary pressures in the eurozone have raised the odds of a rate hike by the ECB.
• In today’s session focus will remain on the Eurogroup meeting.

The EUR/USD pair has continued its consolidation move in the Asian session which is covering a narrow range of 1.0545-1.0600. The asset has remained in the grip of bulls last week after sensing a responsive buying action last week after printing a low of 1.0350 last week. A firmer rebound in the risk on impulse has underpinned the risk-perceived currencies.

The shared currency bulls got buying traction last week after the street started raising bets on a rate hike announcement by the European Central Bank. The Euro’s Harmonized Index of Consumer Price (HICP) landed at 7.4%, constant with the prior figures. However, the sustainability of the inflationary pressures at elevated levels is raising concerns for the counter. Rising inflationary pressures in times when the eurozone is facing the heat of the Ukraine crisis may force the ECB to paddle up their rate hike cycle.

In today's session, investors will keep an eye on the Eurogroup meeting, which may discuss the embargo on Russian oil imports. A few nations such as Germany which were opposing the sooner prohibition of Russian oil have withdrawn their opposition and have arranged their dependency on other oil imports alternatives.

On the dollar front, the US dollar index (DXY) has slipped below 103.00 in the early Asian trade and is expected to log more losses on positive market sentiment. The safe-haven assets are losing their appeal amid a firmer rebound in the global equities.