News: FOREX-Euro bounce pauses ahead of U.S. inflation

A resurgent euro was hunkered just short of strong resistance levels on Tuesday as traders awaited U.S. inflation data due later in the week, wary it could trigger gains in the dollar.
The common currency EUR=EBS leapt 2.7% last week after a hawkish shift in tone at the European Central Bank. It has held gains but has been unable to beat resistance around $1.1483 even as European bond yields have leapt and last bought $1.1441.
Stunningly strong U.S. labour data last week has put extra focus on inflation - forecast at a four-decade high 7.3% - in the lead up to March's Federal Reserve meeting.
Futures markets 0#FF: are pricing an almost 1-in-3 chance of a 50 basis point rate rise and the prospect of aggressive hikes has been supporting the dollar. FEDWATCH
"The surprise beat by the non-farm payroll numbers (which we were warned by Fed officials and the White House would be very weak due to Omicron) leaves the Fed in an unexpected territory," said NatWest Markets rates strategist Jan Nevruzi.
"The CPI will be critical on how the narrative develops until the March (meeting)," he said, though adding that barring a big surprise, March will probably bring only a 25 basis points hike.
The dollar crept 0.1% higher on the yen JPY=EBS in early Asia trade to 115.22 and the U.S. dollar index =USD hovered at 95.425.
Overnight bitcoin and the Australian dollar posted gains as equity markets cautiously rallied in Europe. The Aussie AUD=D3 rose about 0.7% and was last at $0.7130, just shy of resistance around its 50-day moving average of $0.7163.
Bitcoin BTC=BTSP punched through its 50-day average to top $44,000 for the first time in nearly a month on Monday and is up more than 17% in four sessions.
The New Zealand dollar NZD=D3 held a small overnight gain at $0.6642. Sterling GBP=D3 was steady at $1.3538.
A quiet data calendar awaits on Tuesday, with a U.S. small business survey due later in the day. U.S. inflation data is due on Thursday.
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	Currency bid prices at 0059 GMT 
 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS	$1.1443		$1.1442	 +0.00%		 +0.65%	  +1.1445	 +1.1434 
 Dollar/Yen		JPY=EBS	115.2900	   115.1050	+0.14%		 +0.22%	  +115.3050   +115.1900 
 Euro/Yen		 																			 
 Dollar/Swiss	  CHF=EBS	0.9234		 0.9235	  -0.03%		 +1.22%	  +0.9235	 +0.9228 
 Sterling/Dollar   GBP=D3	 1.3535		 1.3535	  +0.01%		 +0.09%	  +1.3538	 +1.3532 
 Dollar/Canadian   CAD=D3	 1.2670		 1.2667	  +0.02%		 +0.21%	  +1.2671	 +1.2666 
 Aussie/Dollar	 AUD=D3	 0.7132		 0.7126	  +0.08%		 -1.88%	  +0.7133	 +0.7121 
 NZ				NZD=D3	 0.6642		 0.6635	  +0.12%		 -2.95%	  +0.6645	 +0.6634 
 Dollar/Dollar																				   
All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX
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World FX rates	https://tmsnrt.rs/2RBWI5E 
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