• EUR/USD is gaining before the final harmonized indicator of consumer price data in Germany on Thursday.
• EURO may depreciate in connection with growing commercial tensions before potential tariffs in the USA.
• The CME Fedwatch tool suggests that the probability of lowering the FED rate in June has now dropped to almost 30%.

The EUR/USD pair continues to rush up during the third session in a row, floating around 1.0430 in Asian commercial hours on Thursday. Investors are waiting for the final harmonized indicator of consumer price data (HICP), established until a later day. It is expected that the German HICP inflation header will remain stable after 2.8% year on year in January.

However, concerns about the potential global trade war are burdened by the risk -sensitive pair of EUR/USD. According to CNBC, US President Donald Trump could announce his mutual tariff plan before meeting the Indian Prime Minister Narendra Modi. Trump recently signaled his intention to impose tariffs to all countries that impose import obligations to the United States.

In economic data, the American Labor Statistics Office announced on Wednesday that the consumer price rate (CPI) increased by 3.0% year -on -year in January, exceeding the expected 2.9%. Core CPI, which excludes food and energy, increased to 3.3%from 3.2%, exceeding the forecast of 3.1%. Every month, inflation header accelerated in January to 0.5% from 0.4% in December, while CPI Core increased to 0.4% from 0.2%.

Stronger than expected US inflation data strengthened the expectations that the Federal Reserve (FED) will keep interest rates at 4.25% -4.50% for a long time. According to the CME Fedwatch tool, the probability of lowering the FED rate in June has now dropped to almost 30%.

Fed Chairman Jerome Powell noticed that while inflation was moderated, the central bank still has to do. Speaking on Tuesday, Powell emphasized that the Fed is not in a hurry to lower interest rates, citing constant strength on the labor market and solid economic growth.