EUR/USD: awaiting June CPI as next catalyst - BBH

Analysts at Brown Brothers Harriman explained that the euro was confined to a narrow trading ranges last week and finished little changed against the dollar.  

Key Quotes:

"Since the middle of May, the euro has traded in an $1.11-$1.13 trading range.  After starting the week in Asia above $1.12, it was confined to the lower half of the range in the past several sessions.  

The sideways trading has alleviated the extended technical condition we have been monitoring.  In our macro view, we are concerned that a great deal of good eurozone news has been discounted, and that the economic momentum slows and price pressures ease.  

The softening seen in the flash PMI is consistent with this.  The preliminary estimate for June CPI will be reported. The signal may be obscured by a decline in the headline and a small gain in the core."