EUR/USD targets 1.2400 on US CPI, fresh daily highs
|- The pair climbed to the 1.2385/90 band, fresh session tops.
- The greenback dropped to lows in the sub-90.00 area.
- US Core CPI rose in light with expectations 1.8% YoY.
A bout of buying interest around the European currency is now lifting EUR/USD to fresh tops in the 1.2360 region following the publication of US CPI for the month of February.
EUR/USD higher post-data
Spot quickly climbed to new 3-day peaks after US inflation figures tracked by the CPI showed headline consumer prices rising at an annualized 2.2% during February and 0.2% inter-month.
In addition, consumer prices stripping food and energy costs rose 1.8% over the last twelve months and 0.2% on a monthly basis. All prints matched initial estimates, leaving no room for upside surprises and thus weighing down on the buck.
The pair accelerated the leg higher in the wake of the US CPI, now targeting the critical barrier at 1.2400 the figure as market participants now expect the Fed to refrain from embarking on a more aggressive rate path.
EUR/USD levels to watch
At the moment, the pair is up 0.28% at 1.2374 and a break above 1.2446 (high Mar.8) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.18). On the downside, immediate contention emerges at 1.2273 (low Mar.9) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).
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.