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First its US CPI and then comes the ECB- EUR/USD ready and waiting

As covered here earlier today, the EUR/USD is still trading water, right now inside a range defined by its 200 and 100 day moving averages, as it awaits the latest reading on US consumer prices. That is due to be released at 1.30pm GMT today and here is what is expected. The annualised rate of CPI is forecast to rise by 3.4% in March, from 3.2% in February. Conversely, the core annualised rate is expected to fall slightly, from 3.8%, to 3.7%. The monthly readings are perhaps not so important in the overall picture, but could have an impact if wide of the mark. Those will be noted when the data hits the screens. So, anything above or below the previous readings on both counts is going to cause a reaction across the markets. It really all depends on how little, or how large any change turns out to be. So, the EUR/USD will spike, or slide on anything in that respect, but it remains to be seen just now aggressive any reaction might be and that is especially the case, with the ECB monetary policy decision due tomorrow. There will be more detail and dissemination to add once the CPI data is known, but for the time being the Euro scene is quiet. Quiet before the storm perhaps? we shall see later today. The EUR/USD is just now trading at 1.0856
 

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