EURUSD rose significantly and intends to keep its positive momentum.
The major currency pair rose pretty much last night and hopes to continue this tendency. the current quote for the instrument is 1.1964.
The statistics published by the USA last night indicated a boost in the CPI in March. Investors got nervous on expectations that inflation might be rather moderate thus allowing the Fed to avoid revising the benchmark rate.
The CPI showed 0.6% m/m in March and that’s the biggest MoM reading since the summer of 2012. The Core CPI showed 0.3% m/m. Market expectations for indicators were 0.5% m/m and 0.2% m/m respectively, which are both better than February readings.
On YoY, US inflation showed 2.6% in March with the Fed’s target level being at 2%.
These readings may probably indicate that the Fed will keep its monetary policy intact for a long time. It is not beyond the reach of reason to suggest that inflation will keep boosting in the coming months amid the stimulus packages and strong support to the country’s economy. This put pressure on the “greenback” and helped the Euro to recover.
Right now, the market attention is switching to the US Retail Sales report scheduled for Thursday.
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