30 Apr 2014
EUR/USD accelerates to 1.3850
FXStreet (Edinburgh) - The buying interest is picking up pace around the euro on Wednesday, lifting the EUR/USD to fresh intraday highs in the 1.3845/50 band.
EUR/USD firmer after EMU data
Better-than-expected inflation figures in the euro bloc for the month of April have triggered the current correction higher in spot, almost fully retracing yesterday’s dip post-German CPI poor numbers. Expectations for another ‘on-hold’ ECB meeting in the upcoming week would also be fuelling the ascent, although ‘verbal intervention’ from President Draghi is far from ruled out. “The Council, therefore, probably will wait to get the inflation figures for May, as the seasonal distortion will have disappeared. Yet, according to our projections, inflation will remain at alarmingly low levels over the forecast horizon and, as stressed by the Council, there are several risks associated with low levels of inflation which deserve to be countered by actions from the monetary authority”, assessed Clemente de Lucia, Analyst at BNP Paribas.
EUR/USD levels to watch
As of writing the pair is advancing 0.28% at 1.3850 with the next hurdle at 1.3880 (high Apr.29) ahead of 1.3906 (high Apr.11) and finally 1.3935 (high Mar.19). On the other hand, a break below 1.3771 (low Apr.30) would target 1.3738 (low Apr.8) en route to 1.3729 (100-d MA).
EUR/USD firmer after EMU data
Better-than-expected inflation figures in the euro bloc for the month of April have triggered the current correction higher in spot, almost fully retracing yesterday’s dip post-German CPI poor numbers. Expectations for another ‘on-hold’ ECB meeting in the upcoming week would also be fuelling the ascent, although ‘verbal intervention’ from President Draghi is far from ruled out. “The Council, therefore, probably will wait to get the inflation figures for May, as the seasonal distortion will have disappeared. Yet, according to our projections, inflation will remain at alarmingly low levels over the forecast horizon and, as stressed by the Council, there are several risks associated with low levels of inflation which deserve to be countered by actions from the monetary authority”, assessed Clemente de Lucia, Analyst at BNP Paribas.
EUR/USD levels to watch
As of writing the pair is advancing 0.28% at 1.3850 with the next hurdle at 1.3880 (high Apr.29) ahead of 1.3906 (high Apr.11) and finally 1.3935 (high Mar.19). On the other hand, a break below 1.3771 (low Apr.30) would target 1.3738 (low Apr.8) en route to 1.3729 (100-d MA).