BofA sees EUR/USD and USD/JPY vulnerable to today’s CPI data

BofA sees EUR/USD and USD/JPY vulnerable to today’s CPI data

US concludes third round of strikes against Iran after Trump reinstates blockade Investing.com - Bank of America identified two currency pairs as particularly vulnerable to this week’s U.S. CPI release, with EUR/USD exposed to a hot print and USD/JPY at risk if inflation comes in soft. The firm noted on July 6, 2026 that the dollar needed a new catalyst to determine its next directional move. EUR/USD appears vulnerable to stronger-than-expected inflation data, with option flow and skew moving in favor of puts last week and the bank’s technical matrix indicating momentum is turning against the euro.

Bank of America stated that with both sentiment and momentum deteriorating, a stronger-than-expected print could open the door for the EUR/USD downtrend to extend. If inflation data comes in soft, the firm sees bearish USD/JPY as attractive. A bearish reversal signal in Bank of America’s technical matrix indicates the USD/JPY uptrend is becoming increasingly vulnerable.

The firm’s valuation signals indicate the pair may be due for some mean reversion. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.