Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
EUR/USD Slips as Latest Euro-Zone Inflation Data Stays ECB Hand

EUR/USD Slips as Latest Euro-Zone Inflation Data Stays ECB Hand

Nick Cawley, Senior Strategist

Share:

Talking Points

- EURUSD slipped lower after Euro-Zone inflation missed expectations.

- Release will strengthen ECB President Mario Draghi’s resolve to continue with his ultra-loose monetary policy.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for next week on the DailyFX Webinar Calendar.

Euro-Zone inflation in March fell to 1.5% y-o-y from 2.0% in February and missed expectations of a 1.8% increase. On a monthly basis, CPI rose 0.7% against a prior month’s reading of 0.9% as energy and food prices moderated. While this decrease was partially priced into the market after Thursday’s inflation figures out of Germany, the single currency edged lower as the y-o-y fall eased the pressure on ECB President Mario Draghi.

The recent ‘hawkish’ talk floating around the market, including tapering and raising rates before the bond-buying program expires, had given the single currency a leg-up to a four-and-a-half-month high, albeit from a low base. President Draghi will be able to point to this month’s inflation reading as a confirmation of his monetary policy at the next council meeting on April 27.

Chart: EURUSD Daily Timeframe (December 2, 2016 – March 31, 2017)

Chart by IG

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES