EURUSD remains volatile; the asset is very sensitive to any changes in the market sentiment.

The major currency pair fixed within a sideways range on Thursday. the current quote for the instrument is 1.0482.

The US economy is now getting real confirmation that an inflation boost might really damage its key elements and mechanisms. Quarterly reports from big-time retailers, such as Walmart and Target, showed that the consumer sector marginality was reducing. Earlier, this sector was considered a protective one, but this status is fading away now due to the inflation rally. It’s interesting that the latest retail sales report hasn’t shown it yet.

Market players will keep an eye on inflation until the Fed’s rate hike shows its effect.

The US Fed Chairman Jerome Powell said the same yesterday. However, there are reasons for raising the rate faster, 50-75 basis points at a time. This aspect puts pressure on capital markets and makes investors escape risks. In this light, EURUSD remains highly volatile.

Later today, market players should pay attention to the weekly Unemployment Claims report from the US, which is currently fluctuating between 200-210K. Any significant deviations from this range may signal changes in the labour market.

Moreover, the European Central Bank is planning to release its Monetary Policy Meeting Accounts. Investors will look through the document to find any hints at the regulator’s willingness to make its monetary policy more aggressive in response to the inflation rally. This might be positive for the Euro.