EUR/USD gets set to go
|The slowdown in German inflation is fuelling hopes that the ECB will ease policy in the coming months. German CPI rose 0.4% m/m, weaker than the 0.5% expected. Annual inflation slowed from 2.5% in February to 2.2% in March, the lowest since May 2021.
Germany's reading is a useful guide to what to expect in the eurozone on Wednesday, which is likely to come in weaker than average market expectations for headline inflation to slow from 2.6% to 2.5% and core inflation to slow from 3.1% to 3.0%. At the same time, it would take a significant deviation from the forecasts to have a material impact on prices.
EURUSD slipped to 1.075, the lower boundary of the range since November. This is a good starting position for new momentum on a breakout or bounce. US data released on Monday was supportive of a strong dollar, while German inflation data was in favour of a weaker euro. If the balance of power remains the same, EURUSD may decide to move towards 1.05.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.