- Core CPI inflation for February stands at 4.6%, below the 4.7% forecast.
- US yields hit new daily lows and the dollar weakens.
- EUR/USD erases most of the day’s losses after US data.
The pair EUR/USD rose from 1.0866 to 1.0895 after the release of core US consumer inflation, which came in slightly below expectations. The figures weighed on the US dollar which lost ground across the board.
The Basic Personal Consumption Price Index rose 0.3% in February, less than the 0.4% market consensus, to an annual rate of 4.6%, down from 4.7% in January. The Personal Consumption Price Index rose 0.3% in February and 5% year-on-year. Report that Personal Income grew 0.3%, above the 0.2% expected, while Personal Spending rose 0.5%, beating the consensus of 0.3%.
The figures showed a slow decline in US consumer inflation. Core PCE for February matched the lowest reading in 15 months. These numbers might be welcomed by the Fed, but they still show that inflation remains high. The Chicago PMI and the University of Michigan Consumer Confidence will be released on Friday.
In the Eurozone, the harmonized CPI stood at 6.9% year-on-year in March, below the expected 8.5% and 7.1%. Core CPI held at 5.7% year-on-year.
The US currency fell moderately overall after the report was released, while US yields fell. The 10-year Treasury yield fell from 3.54% to 3.51%, the lowest level since Tuesday. DXY continues to rise on the day, but has moved away from the highs.
EUR/USD moved higher, approaching 1.0900. However, it is still below that zone. It previously peaked at 1.0925, before turning lower. It bottomed out at 1.0863. On a weekly basis, the pair is heading towards the highest close in a year.
In the short term, the pair is moving with a bullish bias, but is unable to break the resistance at 1.0925/30 and is showing difficulties to hold above 1.0900. The downside correction could find support at 1.0855/60 and 1.0820.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
