EURUSD trades near 1.06 as Eurozone CPI report looms

The US Dollar is experiencing a pullback as interest rate expectations stabilize. Despite strong US economic data, the market anticipates three rate cuts by the end of 2025. The Eurozone's CPI report today is expected to influence future ECB decisions. The probability of a 50 basis point cut by the ECB in December rose to 63% but has since decreased. The focus is on Core CPI, which is expected to show a slight increase. A lower-than-expected Core CPI could lead to a more uncertain ECB decision. On the EURUSD chart, the currency pair is trading near 1.06 after recovering from earlier losses. Buyers are looking for a breakout above this level, while sellers are positioned to defend it. The market is closely watching today's CPI report for further direction.