EUR/USD rebounds mildly from 1.0140 as focus shifts to inflation data

• EUR/USD has rebounded from 1.0140 amid a minute correction in the DXY.
• The ongoing Eurogroup meeting and the upcoming Germany HICP will be crucial for eurozone.
• Lower US core CPI is indicating that the oil and food prices are guiding the price pressures.

The EUR/USD pair has recovered some intraday losses after fetching bids near 1.0140 in the Asian session. The shared currency bulls have bounced as the US dollar index (DXY) is facing a mild correction. The pair is likely to remain on the tenterhooks as the investors are shifting their focus on the inflation data from the US and Germany this week.

The economic data from Germany carries a significant impact on the shared currency. A preliminary estimate for Germany's Harmonized Index of Consumer Prices (HICP) is 8.2%, similar to its prior print. It is worth noting that the European Central Bank (ECB) has not elevated its interest rates yet while the Western leaders have come way ahead. This time, a rate hike looks likely as the ECB is done with the Asset Purchase Program (APP) and is left with interest rate policy measures only.

Apart from that, the ongoing Eurogroup meeting will also affect the eurozone bulls.  Most probably, the issues of higher inflation, more sanctions on Russia, and Brexit issues will be discussed.

Meanwhile, the US dollar index (DXY) is hovering around 107.30 after hitting a high of 107.45. The fundamentals are supporting a breach of the 19-year high at 107.79.  The consensus for the US Consumer Price Index (CPI) is higher at 8.7%. While the core CPI that excludes oil and food prices is seen lower at 5.7% than the prior print of 6%.

A significant fall in the core CPI indicates that the price pressures are mostly guided by volatile oil and food prices. Also, the slippage in the prices of base metals and other commodities is lowering the inflation rate.