EUR/USD rises toward 1.0900 after US Core PCE


  • US February Core PCE inflation comes in at 4.6%, below 4.7% expected.
  • US yields hits fresh daily lows, US Dollar weakens.
  • EUR/USD erases most of it day’s losses after numbers.

The EUR/USD rose from 1.0866 to 1.0895 following the release of US Core Consumer inflation that came in slightly below expectations. The figures weighed on the US Dollar that lost ground across the board.

The Core Personal Consumption Expenditures Price Index rose 0.3% in February, less than the 0.4% of market consensus to an annual rate of 4.6%, below the 4.7% of January. The PCE Price Index rose 0.3% in February and 5% YoY. The same report showed that Personal income grew by 0.3%, above the 0.2% expected while Personal Spending rose by 0.5%, surpassing consensus of 0.3%

The numbers showed consumer inflation in the US falling slowly. The February core CPE matched the lowest reading in 15 months. Those numbers could be welcome by the Fed, but still shows inflation remains elevated. The Chicago PMI and University of Michigan’s Consumer Confidence will be released later on Friday.

In the Eurozone, the Harmonised CPI came in softer at 6.9% YoY in March, down from 8.5%, below expectations of a drop to 7.1%. The Core CPI steadied at 5.7% YoY.

The US Dollar fell moderately across the board after the report as US yields sank. The 10-year Treasury yield fell from 3.54% to 3.51%, the lowest since Tuesday. The DXY is still up for the day, but it moved off highs.

The EUR/USD moved to the upside, approaching 1.0900. Still it remains below that relevant area. Earlier it peaked at 1.0925, before turning to the downside. It bottomed at 1.0863. On a weekly basis, the pair is heading toward the highest close in a year.

In the short term, the pair is moving with a bullish bias but is being unable to break the 1.0925/30 resistance and shows difficulties holding above 1.0900. Downward correction could find support at 1.0855/60 and 1.0820.

Technical levels

EUR/USD

Overview
Today last price 1.0886
Today Daily Change -0.0019
Today Daily Change % -0.17
Today daily open 1.0905
 
Trends
Daily SMA20 1.0714
Daily SMA50 1.0732
Daily SMA100 1.0646
Daily SMA200 1.034
 
Levels
Previous Daily High 1.0926
Previous Daily Low 1.0824
Previous Weekly High 1.093
Previous Weekly Low 1.0631
Previous Monthly High 1.1033
Previous Monthly Low 1.0533
Daily Fibonacci 38.2% 1.0887
Daily Fibonacci 61.8% 1.0863
Daily Pivot Point S1 1.0844
Daily Pivot Point S2 1.0782
Daily Pivot Point S3 1.0741
Daily Pivot Point R1 1.0947
Daily Pivot Point R2 1.0988
Daily Pivot Point R3 1.105

 

 

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