Forex Today: Major pairs move sideways as focus shifts to EU projections, US CPI

Here is what you need to know on Thursday, February 10:

The US Dollar Index extends its sideways grind near mid-95.00s after closing flat on Wednesday as investors await the next significant catalyst. The European Commission will release its Economic Growth Forecasts during the European trading hours. In the second half of the day, the weekly Initial Jobless Claims and January Consumer Price Index (CPI) data will be featured in the US economic docket. In the late American session, Bank of England Governor Andrew Bailey will be delivering a speech.

US January CPI: A brief market primer.

Although the demand seen at the 10-year US Treasury note auction on Wednesday was relatively weak, the benchmark 10-year US Treasury bond yield stays in a consolidation phase above 1.9%. Meanwhile, US stocks futures indexes are down between 0.2% and 0.3% early Thursday, suggesting that investors have turned cautious ahead of the inflation data. The annual CPI is expected to climb to a new four-decade high of 7.3% in January from 7% in December.

 US Inflation Preview: Core CPI above 6% could spark next dollar rally.

The barrel of West Texas Intermediate fluctuates below $90.00 for the second straight day on Thursday. The data from the US showed that crude oil inventories declined by 4.7 million barrels last week, compared to the market expectation for a build of 0.36 million barrels, but this print failed to provide a boost to crude oil prices.

EUR/USD fluctuates in a very tight range above 1.1400 for the second straight day on Tuesday. European Central Bank's Governing Council and Bundesbank President Joachim Nagel voiced his support for a rate hike in 2022 but these comments were largely ignored by market participants.

GBP/USD advanced toward 1.3600 on Wednesday but lost its bullish momentum. "A case can be made for a measured rather than an activist approach to policy decisions," Bank of England Chief Economist Huw Pill said.

Gold reached its highest level in two weeks above $1,830 amid retreating US Treasury bond yields and started to consolidate its gains.

USD/JPY touched a fresh monthly top near 115.70 in the early European morning on Thursday but the pair is finding it difficult to gather momentum.

Bitcoin is struggling to make a decisive move in either direction and stays relatively quiet at around $44,000. Ethereum gained nearly 4% on Wednesday but is already down 2% on Thursday, trading near $3,200.