24 Mar 2015
EUR/USD consolidates below 1.10
FXStreet (Edinburgh) - The upbeat tone remains intact around the single currency on Tuesday, with EUR/USD navigating the upper-1.0900s so far.
EUR/USD attention to US CPI
Following the better-than-expected manufacturing and services PMIs in Euroland, the pair’s ongoing upside will be put to the test, as the US inflation figures are due next. Prior surveys see the headline CPI contracting 0.1% on a year to February while Core prices would gain 1.6%, matching the previous reading.
In another direction, the pair kept the composure after Fed’s Bullard speech. He said that the Fed has now more options after dropping the ‘patient’ stance. Bullard also sees US economic growth rebounding in the second quarter and the unemployment rate in sub-5% levels around Q3. He stressed that the effects of lower oil prices on the inflation are bigger than the effects coming from a strong dollar and that current very low interest rates are no longer appropriate for the economy.
EUR/USD important levels
The pair is now up 0.27% at 1.0976 with the next hurdle at 1.1062 (high Mar.18) ahead of 1.1115 (high Mar.5) and then 1.1123 (61.8% of 1.1534-1.0457). On the flip side, a break below 1.0909 (21-d MA) would open the door to 1.0780 (100-h MA) and then 1.0768 (hourly low Mar.23).
EUR/USD attention to US CPI
Following the better-than-expected manufacturing and services PMIs in Euroland, the pair’s ongoing upside will be put to the test, as the US inflation figures are due next. Prior surveys see the headline CPI contracting 0.1% on a year to February while Core prices would gain 1.6%, matching the previous reading.
In another direction, the pair kept the composure after Fed’s Bullard speech. He said that the Fed has now more options after dropping the ‘patient’ stance. Bullard also sees US economic growth rebounding in the second quarter and the unemployment rate in sub-5% levels around Q3. He stressed that the effects of lower oil prices on the inflation are bigger than the effects coming from a strong dollar and that current very low interest rates are no longer appropriate for the economy.
EUR/USD important levels
The pair is now up 0.27% at 1.0976 with the next hurdle at 1.1062 (high Mar.18) ahead of 1.1115 (high Mar.5) and then 1.1123 (61.8% of 1.1534-1.0457). On the flip side, a break below 1.0909 (21-d MA) would open the door to 1.0780 (100-h MA) and then 1.0768 (hourly low Mar.23).