Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

EUR/USD Surges Despite Soft CPI Data

EU's annual CPI for March came in at 0.5%, missing the 0.6% forecast which was already lower than the 0.7% in February. This is the slowest rate of inflation since Nov. 2009 when it was 0.6%. 

You would think such a reading would pressure the Euro, but month end flows and a general flow of risk appetite is boosting the EUR/USD.

(EUR/USD 4H chart 3/31)

If this rally can extend above 1.3875, last week's high, we should be looking at a bullish continuation. However, it is premature to call that outlook since price is still within a falling channel, and the ECB will be making its monetary policy statement on Thursday.