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EURUSD : Rising Despite Weak Inflation Data

EUR seems like following an uptrend channel trend as shown in the hourly chart. EUR is trading higher against USD despite of the weak euro zone Inflation data. The annual rate of inflation in euro zone in the month of March slowed down to .5% from .7% in the previous month which is the lowest reading since November 2009. The core inflation which excludes volatile items like food and energy costs fell from 1% to .7% in February. The Euro Zone Inflation has been below the level of 1% for six straight months raising speculation that the policymakers would need to implement some stimulus in the economy for recovery.

Investors concern however seems like balanced by another data which showed that China’s gross domestic product expanded at an annual rate of 7.4% in the first three months of 2014 slightly better than the economist’s expectation for the growth of 7.3%.