EUR/USD sees further upside near 1.1100 ahead of Eurogroup meeting

• EUR/USD is auctioning near the upper boundary of the previous consolidation in a 1.0945-1.1042 range.
• Soaring inflation in Eurozone is likely to compel ECB to hike the interest rates.
• The DXY is firmer on record lows US Unemployment Rate.

The EUR/USD pair seems to find significant bids near its previous consolidation range, which placed in a range of 1.0945-1.1042. The pair has sensed a corrective pullback after a decent upside, which may call a rebound going forward.

Last week, a slight plunged in the Euro Unemployment Rate had brought a decent sell-off in the shared currency. The Eurostat reported Unemployment Rate at 6.8%, which remained in the mid of market consensus at 6.7% and the prior figure of 6.9%.  Meanwhile, investors raised bets over an interest rate hike by the European Central Bank (ECB) on soaring inflation numbers.

The German annual inflation has climbed to 7.3%, the highest print in more than four decades. While the Consumer Price Index (CPI) in France has landed at 5.1% and the inflation number in Italy has reached 6.7%. Adding to that, the Eurozone Harmonized Index of Consumer Prices (HICP) rose TO 7.5%, much higher than the market estimate of 6.6% and the previous print of 5.9%. Therefore, higher standalone and consolidated Consumer Price Index (CPI) figures are likely to compel the ECB’s policymakers to underpin an interest rate hike.

Meanwhile, the US dollar index (DXY) is holding gains around 98.56 despite softer US Nonfarm Payrolls (NFP). The US economy has added 431k jobs higher than the estimate of 490k and the previous print of 750k. Although the record lows Unemployment Rate at 3.6% has cushioned the greenback.

Going forward, investors will focus on the Eurogroup meeting, which is due on Monday. This will keep the shared currency on the sidelines. While the greenback docket will release Federal Open Market Committee (FOMC) minutes on Wednesday.