EUR/USD flat as traders wait for US CPI amid ongoing US shutdown

• EUR/USD remains steady amid the prolonged US government shutdown, Fed blackout.
• Trump hints at new threats toward China, including potential airplane-related measures.
• Softer German PPI reinforces ECB's wait-and-see stance as officials downplay urgency for rate moves.

EUR/USD is virtually unchanged during Monday's North American session, slightly down 0.05% at around 1.1643 after hitting a daily high of 1.1675 amid a scarce economic docket in the US.

Euro holds steady near 1.1640 with focus shifting to US inflation data and Trump's trade rhetoric

The US government shutdown extended for the twentieth consecutive day, leaving investors questioning about the economy's status, as they await the latest Consumer Price Index (CPI) report to be released on Friday. Last Saturday, Federal Reserve (Fed) officials began their blackout period, which will end on October 29, once the central bank released its monetary policy statement, followed by Fed Chair Jerome Powell press conference.

Consequently, market players will remain focused on US domestic politics and US President Donald Trump social media posts. Earlier, Trump said that he could threaten China on other things, including airplanes, and added that he will go to China sometime early next year.

In Europe, officials of the European Central Bank (ECB) crossed the wires. Bundesbank President Joachim Nagel said that they can remain in wait-and-see mode on rates. Earlier, ECB's member Isabel Schnabel said that the Euro's global position is strong and should be strengthened.

During the European session, the Producer Price Index (PPI) in Germany was softer than expected for the third straight month in September. The EUR/USD reaction was muted to the data.

Ahead this week, the Eurozone docket will feature speeches by ECB's member Lane, Escriva, the President Christine Lagarde and Kocher. Across the pond, traders will be leaning on Trump's trade comments and news about the re-opening of the US government.

Daily market movers: The Euro treads water amid dull trading session

• The US Dollar Index (DXY), which tracks the performance of the buck's value against a basket of six currencies, is up 0.08%, at 98.62.
• US President Donald Trump softening his tone on China, providing a leg-up in the EUR/USD pair, after he said that 100% tariffs are "unsustainable." While he confirmed his meeting with China's President Xi Jinping on South Korea, his trade rhetoric could provide volatility to the financial markets.
• Ukraine's President Zelensky confirmed that he will meet European leaders later this week, following his visit to Washington.
• German's PPI in September fell -0.1% in September, below estimates for a 0.1% increase. The print follows declines of -0.5% and -0.1% in August and July, respectively.
• Money markets are fully pricing in a 25-basis-point rate cut at the Fed's October 29 meeting, with odds at 97%, according to the Prime Market Terminal probability tool.

Technical outlook: EUR/USD hovers below key resistance levels

EUR/USD's technical picture suggests the pair is neutral to bearish biased, capped on the upside by the 100-day Simple Moving Average (SMA) at 1.1650, the 20-day SMA at 1.1677 and by the 50-day SMA at 1.1692.

The Relative Strength Index (RSI) remains bearish, an indication that further downside is seen.

Key support sits at 1.1600, followed by 1.1550 and 1.1500. A decisive break below these levels would expose the August 1 cycle low near 1.1391. Conversely, if buyers clear the 50-, 20- and 100-day SMAs, the next resistance is seen at 1.1700. A breach of the latter will expose 1.1800 and July 1 high at 1.1830.