Currently the pair in trading below the 1.2600 level and it is looking for the 1.2565, as today's low.
U.S. CPI reading erases deflation fears. Today, January Consumer Price Index was posted at 0.3% on the monthly basis, as expected, and unchanged between December and January, better than expected. January Core CPI was posted 0.2% better than 0.1% increases expected by markets and 0.0% in December. Annual Core inflation decline slightly to 1.7% in January from 1.8% in December, but it was better than 1.5% YoY inflation expected by market.