EURUSD on Thursday is neutral. The current quote is 1.0960.
Yesterday the US published almost no important statistics except for the Beige Book report. Meanwhile, the Eurozone shared some more exciting data – the final inflation report for March.
Well, the CPI in the Eurozone in March remained at 6.9% y/y, while base inflation stayed at 5.7% y/y. No revisions had been forecast. This is what neutral reports illustrate: the local trend for price falling has paused. On the one hand, energy carrier prices in Europe are going down, primarily gas prices. The heating season passed calmly, but now the Old World has to decide how to refill the underground gas storage. On the other hand, food inflation is quite well expressed. The growth of food prices is a global trend that is unlikely to improve.
To put it simply, high consumer prices in the Eurozone is a signal for the ECB to continue lifting the interest rate.
Mind that the ECB position is now tighter than that of the Fed. This is favourable for the EUR.