The main currency par is being sold for the second consecutive day; the demand is in favor of the USD.
Despite Trump’s neutral speech, frustrated hopes, and mixed statistics, the market’s demand is still in favor of the USD. The current quote for the EUR/USD pair is 1.0519.
Today’s statistics showed that the PPI in the Eurozone in January added 0.7% m/m, the same as in December 2016, although it was predicted to expand only by 0.5% m/m. The Preliminary CPI in February increased by 2.0% y/y against expectations of 1.8% y/y.
So, the inflation target of the European Central Bank has been reached. Very few people believed in it before the inflation started increasing steadily, but yet it happened. The Euro tried to grow after this report was published, but in vain.
During the next meeting of the ECB, it will be interesting to hear the regulator’s comments about this: what range will be considered as acceptable for the CPI and what the ECB is going to do after the most important targets has been reached.
The labor market in the Eurozone remains stable. The Unemployment Rate in January didn’t change in comparison with the previous months and remained at 9.6%. Remembering how complicated the distance from 12% to the current reading was, we can say that there is a very slow, but stable and positive tendency.
RoboForex Analytical Department