EUR/USD missed an opportunity to break above 1.1700, with the euro lacking momentum while the US Dollar (USD) could strengthen further on upcoming inflation data, ING's FX analyst Francesco Pesole notes.

Dollar poised for further recovery on US inflation

"Unless the Fed independence trade returns, EUR/USD might have missed its chance of a break above 1.1700 yesterday. We think US inflation can help the dollar recover further, and the euro is lacking any substantial bullish driver at this point."

"The EUR:USD 2-year swap rate gap has rewidened by 9bp since the start of the year, and is at its widest since late November. With more upside risks for USD front-end rates today, we think there could be conditions for a move to 1.160 in the coming days."