Philip Wee at DBS Group Research highlights an upside bias in EUR/USD, expecting the pair to oscillate around 1.19 rather than 1.18 in early February. European Central Bank officials are downplaying the recent inflation dip and see balanced risks for keeping the deposit rate at 2%, while EUR/USD is projected to retest the late-January high near 1.2080.

Pair seen gravitating to higher range

"Following Monday’s rise, EUR/USD may start to vacillate around a higher 1.19 level, instead of 1.18 in the first week of February."

"More European Central Bank officials downplayed the recent dip in CPI inflation below the 2% target."

"EUR/USD will likely retest the 1.2080 high seen on January 28."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)