Euro pair is showing a bullish trend ahead on European session. The Currency pair is showing uptrend due to the losses in greenback and strong preliminary reading of Eurozone Consumer Price Index. Comments from the European Central Bank (ECB) policymakers, suggesting an extension of easy money policies, offer an extra boost to the EUR/USD upside.

European Union countries voted to subject the U.S. to fresh restrictions on nonessential travel amid a surge in new coronavirus cases, dealing a blow to the tourism industry. A qualified majority of ambassadors voted to reintroduce the curbs, which had been lifted in June, according to an EU statement on Monday. Airline stocks dropped in the U.S., likely in anticipation of the EU move. A Standard & Poor’s index of the country’s nine largest carriers was down 3% at 12:25 p.m. in New York.

On the other hand US dollar index has been drops among a bit of consolidation in virus figures. Weighing in on the greenback gauge and supporting the Euro pair is on bull and the Treasury yields are low. While an easy Eurozone CPI print should provide an additional reason to the EUR/USD bulls, second-tier US Chicago PMI, Consumer Confidence and housing figures may direct follow-on moves. Though, nothing will be more important than the US jobs report for August, which will justify Fed Chair Jerome Powell’s cautious optimism and determine the future of Fed’s tapering. However, the market’s anxiety ahead of today’s Eurozone CPI and Friday’s US Nonfarm Payrolls (NFP) seems to challenge the pair buyers. It’s worth noting that geopolitical fears from Afghanistan and China also probe the EUR pair is on upside.

A study released on Tuesday showed that Alphabet Inc’s (AAPL.O) Google unit, Facebook Inc (FB.O) and Microsoft Corp (MSFT.O) are the three biggest lobbying spenders in Europe in a battle against tough new laws aimed at curbing U.S. tech giants’ powers. Such efforts should be a wake-up call to EU policymakers to further beef up the draft laws and lobbying rules, the study by campaign groups Corporate Europe Observatory and LobbyControl warned. The tech sector outspends even the pharma, fossil fuels, finance and chemicals sectors, which used to dominate lobbying, the report said. “The rising lobby firepower of big tech and the digital industry as a whole mirrors the sectors’ huge and growing role in society,” the study said.

The study found that 612 companies, groups and associations spend more than 97 million euros ($114.4 million) annually lobbying on EU digital economy policies. The data was submitted by companies to the EU Transparency Register up to mid-June this year. Google topped spending at 5.75 million euros, followed by Facebook at 5.5 million euros, Microsoft at 5.25 million, Apple (AAPL.O) at 3.5 million, Huawei Technologies Co Ltd (HWT.UL) at 3 million and Amazon.com Inc (AMZN.O) in sixth place with 2.75 million, the study said. Google and Huawei responded that they submit their lobbying data to the EU transparency register. Recently, Governing Council member Robert Holzmann, as well as Governing Council member and Bank of France Head Francois Villeroy de Galhau rejected the reflation fears. Hence, today’s inflation data from the bloc, expected to double from 0.7% YoY previous readouts to 1.5% YoY, will be the key to watch.

EUR/USD 4 Hour Chart:

Support: 1.1783 (S1), 1.1769 (S2), 1.1756 (S3).

Resistance: 1.1810 (R1), 1.1823 (R2), 1.1837 (R3).

Amidst this above catalysts greenback softening moment and Expectations of Europe CPI monthly report favors Euro. We expect a bullish trend for EUR/USD.