30 Apr 2015
EUR/USD slips below 1.12 on EMU data
FXStreet (Mumbai) - The shared currency trims gains versus its US counterpart in the European morning, with EUR/USD wavering below 1.12, after the single currency was little affected by slightly upbeat EMU CPI gauge which posted zero growth in April, finally breaching the negative territory.
EUR/USD hits fresh highs at 1.1249
The EUR/USD trades higher by 0.55% at 1.1189 levels, giving away 1.12 handle post data. EUR/USD trimmed gains as markets were left unimpressed by EMU CPI print which revealed that consumer price inflation in the euro zone in April moved higher from the negative territory, where it spent four straight months and posted zero growth.
The inflation rate in the 19 countries sharing the euro recorded zero growth in April, following the 0.1% fall seen in March. Meanwhile, core inflation - a measure of price development excluding food and energy - rose 0.6% in April, compared to the same pace of growth in March. However, the EMU unemployment rate came in below estimates at 6.3% vs. 6.2% forecasts.
Earlier inthe session, EUR/USD surged nearly 180 pips after German 10-year bond yields sky rocketed to fresh 7-week highs while the US dollar sell-off resumed as the neutral FOMC failed to lift the greenback from its poor macro data led trough.
Meanwhile, traders may now focus US macro releases due later in the session for further momentum on the major.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1249 (Today’ High) levels, above which gains could be extended to 1.13 levels. On the flip side, support is seen at 1.1160 (March 1 Low) below which it could extend losses to 1.1100 levels.
EUR/USD hits fresh highs at 1.1249
The EUR/USD trades higher by 0.55% at 1.1189 levels, giving away 1.12 handle post data. EUR/USD trimmed gains as markets were left unimpressed by EMU CPI print which revealed that consumer price inflation in the euro zone in April moved higher from the negative territory, where it spent four straight months and posted zero growth.
The inflation rate in the 19 countries sharing the euro recorded zero growth in April, following the 0.1% fall seen in March. Meanwhile, core inflation - a measure of price development excluding food and energy - rose 0.6% in April, compared to the same pace of growth in March. However, the EMU unemployment rate came in below estimates at 6.3% vs. 6.2% forecasts.
Earlier inthe session, EUR/USD surged nearly 180 pips after German 10-year bond yields sky rocketed to fresh 7-week highs while the US dollar sell-off resumed as the neutral FOMC failed to lift the greenback from its poor macro data led trough.
Meanwhile, traders may now focus US macro releases due later in the session for further momentum on the major.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1249 (Today’ High) levels, above which gains could be extended to 1.13 levels. On the flip side, support is seen at 1.1160 (March 1 Low) below which it could extend losses to 1.1100 levels.