Euro Holds Steady On CPI/Trade Balance Data
- Euro-Zone CPI matches the flash numbers.
- The Euro-Zone trade balance figures beat estimates, a sign that the region’s modest recovery continues.
- FX moves remain dominated by European politics.
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Euro crosses have held steady after the final Euro-Zone consumer price index reading for March revealed no changes to the flash numbers.
Euro-Zone CPI was confirmed at 0.8% in March, as expected, up from 0.4% in February, with the year-on-year reading staying at 1.5% as forecast. Core inflation was confirmed at a monthly rise of 0.8%, slightly above the estimate of 0.7%, which was the rate in February.
The Euro-Zone trade balance figures beat estimates, a sign that the region’s modest recovery continues. The Euro-Zone's trade balance with the rest of the world returned to a surplus of 17.8 billion in February after a rare deficit of -0.6 billion the previous month and above estimates of a surplus figure of 16.2 billion.
FX moves remain dominated by European politics, however. British Prime Minister Theresa May’s surprise announcement yesterday of a snap general election to be held on June 8 sparked a huge wave of short covering of the heavily-shorted Pound.
Meanwhile, liquidity is thin as traders await the result of the first round of the French election this coming Sunday, April 23, while the Dollar trades broadly higher after suffering the largest daily loss in a month in yesterday’s session.
EUR/USD 15-Minute Chart (Intraday April 19)
--- Written by Oliver Morrison, Analyst
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