EUR/USD clings to daily gains around the 1.0850 region against the backdrop of a firm note in the greenback on Wednesday.

EUR/USD: Weekly gains look capped near 1.0870

EUR/USD trades within the familiar range, up slightly in the mid-1.0800s against the backdrop of the moderate bounce in the greenback.

The better tone in the European currency looks propped up by comments from ECB’s rate setters. Indeed, ECB Board member Kazimir suggested that the core inflation could take a key role when it comes to interest rate decisions at the time when he left the door open to further rate hikes, albeit at a slower pace. In addition, member Lane defended further rate hikes and suggested inflation in the region could drop rapidly by year end.

In the euro calendar, Consumer Confidence tracked by GfK in Germany improved marginally to -29.5 for the month of April (from -30.6), while the Consumer Confidence in France receded to 81 in March (from 82).

In the US, MBA Mortgage Applications expanded 2.9% in the week to March 24 and Pending Home Sales are due later.