EURUSD

The Consumer Price Index (CPI) announced for Germany on Tuesday met the monthly expectation (0.2%), indicating that inflation in the Eurozone remains stable for the Euro/Dollar exchange rate. Fed Chairman Powell's speech on Tuesday was also priced in by the markets; it had an immediate impact on the Dollar depending on its content. Today's Philadelphia Fed Manufacturing Index from the U.S. (expectation: 8.6) may be decisive for the direction of the Dollar; a data point below expectation could create pressure on the Dollar, while a better-than-expected result may support it. Tomorrow, the Eurozone's annual CPI data (expectation: 2.2%) and especially the critical Non-Farm Payroll, Average Hourly Earnings, and Unemployment Rate data from the U.S. will shape the short-term trend of the exchange rate. Strong U.S. labor data could push the Dollar up, while weak data might give some breathing room to the Euro.