Profit taking is a major force influencing EUR/USD

Traders bet over $18 billion on a rise and pair is sinking

Profit taking usually intensifies ahead major events

Few events are currently bigger than those related to U.S. inflation outlook

On Friday U.S. Jan PCE seen 4.3% yy from 4.4% - f/c range 4.2-4.5%

PCE isn't far below 2022's 5.4% peak - still double Fed's inflation target

Resilient inflation is cause to eye U.S. rates remaining high

Peak for U.S. rate cycle now seen closer 5.5% from 5%

U.S. Int/rate seen above 5% at end-2023 - previously seen around 4.5%