EUR/USD trades above 1.06, looking for further strength

EUR/USD languished between 1.0550 and 1.0600 on Tuesday, testing lows, but later recovered, inching up 0.14% on the day. The final value of the Eurozone Harmonized Consumer Price Index did not affect the euro, and the dollar market had to be weak due to light economic data.

Europe's harmonized consumer price index stood at an annual rate of 2.0% in October, unchanged from the initial reading. The euro was not affected by this data, with little interest from both bulls and bears. U.S. data remains subdued ahead of last week's initial jobless claims and retail sales data in the second half of the week.

European Central Bank President Christine Lagarde will deliver the opening speech at the European Central Bank's financial stability and macroprudential policy meeting on Wednesday. The European Central Bank is currently between a rock and a hard place, as European inflation continues to firm up more than European policymakers initially expected and the euro zone economy continues to tilt one way.

In the first half of this trading week, U.S. economic data releases remained light. Secondary data U.S. initial jobless claims for last week will be released on Thursday and are expected to show a slight rise in new jobless claims for the week ended Nov. 15. US S&P Purchasing Managers' Index (PMI) activity data will be the indicator to watch this week, but it won't be released until Friday.