The major currency pair is consolidating inside a narrow range and waiting for catalysts.
By Thursday, EURUSD became completely inactive; the pair is pretty sluggish, in the morning at least. The current quote for the instrument is 1.1210.
In the morning, China reported on the Consumer Price Index in April, which showed 2.5% y/y, the same as expected and better than it was in March (2.3% y/y). The Producer Price Index in China also improved better than market expectations (0.9% y/y against 0.6% y/y) and the previous reading (0.4% y/y).
Strong numbers on the Chinese inflation mean that China has already taken measures to boost internal economic processes in anticipation of possible complications in the global trade.
The numbers came just in time before further negotiations between The USA and China. Yesterday it became known that Washington already prepared an official announcement on additional increase of import tariffs on Chinese goods, which may come into effect as early as tomorrow. This might be a significant factor to put pressure on China during trade talks.
In the evening, the USA are scheduled to report on the Unemployment Claims, which is expected to improve a little bit in comparison with the previous week. The US labor market is strong, but additional confirmation of this may support the USD.
Moreover, the USA are going to publish the Producer Price Index for April, which may got a bit worse than in March. Another report to be published is the Trade Balance, which may be pretty interesting to read, especially the Export and the Import components.
In addition to that, the US Federal Reserve Chairman Jerome Powell is going to speak in the evening. He is very unlikely to say something new, because the outlook with key rates in the USA is quite clear.