Powell in his testimony to congress yesterday insisted that the rise in inflation which has seen US CPI reach 5.4% is transitory and that there would be no shift in monetary policy. The FED indicated that it would continue it's monthly asset purchases and didn't suggest that it would raise rates sooner then expected. We therefore anticipate EURUSD to keep moving higher despite the continued impact of the coronavirus on the Eurozone economy as the vaccine rollout wasn't as fast as in the US. However, we would not want to see prices consolidate below long term support around 1.17. We await key EU inflation data as well as US retail sales and Michigan Consumer Sentiment tomorrow for any significant price action.