The euro posted modest gains against the U.S. dollar on [current date], with EUR/USD hovering near [level] as traders awaited key Eurozone inflation data due later this week. The dollar index remained subdued amid expectations that the Federal Reserve may pause its rate-hiking cycle after softer U.S. manufacturing data. Markets were pricing in a [percentage]% chance of unchanged rates at the Fed’s next meeting, according to CME FedWatch. Attention is now focused on the Eurozone consumer price index (CPI), scheduled for [date], with inflation expected at [percentage]% year-on-year, down from [previous]% the prior month, and core inflation forecast at [percentage]%. Persistent inflation could encourage the European Central Bank (ECB), the euro area’s central bank, to keep rates higher for longer, while a sharper slowdown could increase expectations for rate cuts and weigh on the euro. The pair’s key levels are [support] and [resistance]; a move above [level] could support further gains, while a fall below [level] could prompt a retest of recent lows. The euro remains resilient despite weakness in Eurozone manufacturing, while services activity is relatively robust. The ECB has said its decisions will remain data-dependent, and the inflation report is likely to influence expectations for its meeting in [month]. Until the release provides clearer direction, EUR/USD may remain range-bound, although a surprise could increase volatility across major currency pairs.