- Euro under pressure on Thursday throughout the market.
- EUR/USD tries to hold above 1.1100.
- Inflation on the rise in the Eurozone, data from the US is coming.
EUR/USD is pulling back from four-week highs and giving back almost all of Wednesday’s gains. The pair hit daily lows below 1.1100, against a backdrop of widespread euro weakness.
The rally loses steam
In Asian hours, EUR/USD hit as high as 1.1184, the highest since March 1. It then lost momentum and fell significantly in the European session. It bottomed out at 1.1087, before returning above 1.1100.
The euro is also correcting against the pound and the Swiss franc. Both EUR/GBP and EUR/CHF lose more than 50 pips. The dollar, for its part, presents mixed results throughout the market, in anticipation of important data, and with the focus also on the situation in Ukraine.
Inflation data in focus, before the NFP
On the last day of the first quarter, the economic calendar is loaded in the US At 1230 GMT it will be the turn of the personal income and spending report and the unemployment subsidy claim report. The core personal consumption spending price index figures will be important for the market and the employment figures will serve as a further preview of Friday’s non-farm payrolls. Later will be the turn of the Chicago PMI index. The president of the New York Fed, John Williams will give a speech in the American morning.
In the Eurozone, March inflation figures (preliminary) will be published on Friday. Several analysts have revised their estimates upwards after the figures from the main countries. In France and Germany the numbers reached historical maximums, and in Spain maximums in almost four decades. The Eurozone consumer price index could exceed 7%, a level higher than this year’s forecast for inflation of European Central Bank.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
