Euro higher after CPI report

The EUR/USD is trading higher after the latest inflation figures showed the cost of living increased in the eurozone.

The EUR/USD is trading at $1.3826, up 0.12%, after the eurozone revealed inflation is now at 0.7%, up from 0.5% but below the 0.8% estimate. Traders bought the euro, despite it missing expectations, because the cost of living still rose. This vindicates Mario Draghi who has maintained that he does not see any proof of deflation in the region.

As tension appears to be easing in Ukraine the euro has gained momentum against the US dollar. Moscow has stated the unrest in eastern Ukraine will not end the same way as it did in Crimea.

At 1.30pm (London time), the US will announce the first-quarter gross domestic product figures, with a consensus of 1.2%. If it is below the estimate, we could see the euro head to towards the $1.39 level which Chris Beauchamp outlined could be hit in the short term.

Spot FX EUR/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.