Euro Rebounds from a Session Low Despite Unexpected Inflation Drop
The economic picture of the Euro-zone has been further shaped this morning by a plethora of economic releases that included a multi-year high for German consumer confidence and a multi-year low for Euro-zone inflation.
The Euro set a session low against the US Dollar at 1.3053, right by the 38.2% retracement of the rally from the pair’s all time low to its all time high. Furthermore, EUR/USD actually rebounded about twenty points following the three-year low Euro-zone inflation. Along with the consumer prices estimate, Euro-zone unemployment was also reported at an all-time high.
Besides for the consumer confidence, we also found out that German unemployment rose for a second month, and the unemployment rate remained at 6.9%. Spanish GDP fell 0.5% in the first quarter according to today’s initial estimate, slightly better than the 0.8% economic decline in Q4 of 2012.
In the UK, BoE’s Miles said he sees inflation remaining at the current level, most recently reported at 2.8%. He said he sees annual inflation falling closer to the BoE’s target 2.0% rate in early 2014.
Finally, the Swiss National Bank reported that its holdings of Euro fell to 48% of Forex holdings from 49% in Q4, while Yen holdings increased from 8% to 9% in the first quarter.
In the North American session, the US Consumer Confidence for April will be released at 14:00 GMT, and may impact USD trading.
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EURUSD Daily: April 30, 2013
Chart created by Benjamin Spier using Marketscope 2.0
--- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to email@example.com .