EUR/USD Flirting with 1.24 Resistance Post-US Data
- Core US inflation rose to 2.1% y/y, back above Fed’s price stability target.
- The EUR/USD is momentarily capped at the 1.2400 resistance.
The EUR/USD is trading at around 1.2379 up 0.18% on Wednesday as the US Consumer Price Index (CPI) excluding food and energy came in-line at 2.1% over the year to march. However, “The Consumer Price Index for All Urban Consumers (CPI-U) decreased 0.1% in March on a seasonally adjusted basis after rising 0.2% in February,” the US Bureau of Labor Statistics said in the report. There was no significant reaction in the EUR/USD although the pair is slightly weakening below the 1.2400 resistance level. The core inflation standing at 2.1% y/y is now moving back above the Federal Reserve’s target, justifying the monetary tightening.
Coming up next in the US is the FOMC minutes’ report which will reveal the details of the last meeting’s discussions. It is scheduled at 18:00 GMT.
The general market is also focusing on the geopolitical crisis in Syria as Trump warned Russia to “get ready” as the US President is considering striking Syria in response to the chemical attack on Sunday.
Meanwhile, the US Dollar is declining since last Friday as the US Non-Farm Payroll came out below expectations at 103 versus 193 forecast by analysts.
The EUR/USD traded up to 1.2393 a few pips shy off the 1.24 resistance. Support is seen at 1.2302 and 1.2260 previous swing low. Resistance is then the 1.2400 resistance mentioned above, and the 1.2477 swing high.