Euro Catching a Bid as CPI Beats, Greek Negotiations Advance
- EURUSD back to moving average envelope near $1.1050.
- EURAUD triangle hints of significant bottom.
- See the DailyFX economic calendar for Tuesday, June 2, 2015.
The Euro is catching a bid this morning after the May Euro-Zone CPI report showed higher inflation than anticipated, suggesting that the ECB's latest actions may be doing enough to stoke prices. While the ECB has never formally said it would do so, those in the camp of the ECB tapering its bond buying program before its projected September 2016 end date were just given significant reinforcement. After all, the ECB is a single mandate central bank (unlike the Fed, which is a dual mandate): it only targets inflation.
With respect to Greece, the Euro has also enjoyed respite from traders after reports of a consensus being reached among Greece's creditors that would allow for a formal agreement to be made with the embattled country sometime in the near future. The market's propensity to respond to Greek debt developments has been fickle at best since February, but with the June 5 IMF payment deadline looming, we'd expect the Euro to remain relatively more sensitive to headlines regarding the southeastern European nation of 11 million.
--- Written by Christopher Vecchio, Currency Strategist
To contact Christopher Vecchio, e-mail firstname.lastname@example.org
Follow him on Twitter at @CVecchioFX
To be added to Christopher’s e-mail distribution list, please fill out this form
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.